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Accounting
Accounting
This problem explores 5 common types of adjusting journal entries. All problems relate to XYZ
Company, which has a fiscal year-end of December 31.
Required
Record the entry for the purchase of supplies and for the year-end adjustment.
b.) Depreciation
XYZ Company purchases a new building for $720,000 on April 1, 2024. The building is fully financed
by a mortgage. The building is expected to be useful for 20 years, after which time it will have no
residual value. The company wishes to use straight-line depreciation.
Required Record the journal entry for the purchase of the building and for the year-end
adjustment.
Required
Record the year-end adjustment and the entry for when salaries are paid on Friday, January 1. d.)
On October 1, 2024, XYZ Company loaned an employee (Fred Smith) $1,000. Fred signed a note
promising to pay back the $1,000 in full plus interest at annual rate of 12%. On May 1, Fred pays back
the note and accrued interest.
Required
Record the journal entry for the initial loan, the year-end adjustment and the repayment.
Required
Record the journal entry December 1 and for the year-end adjustment.