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Business, 03.03.2020 21:56 BreBreDoeCCx
Kingbird, Inc. has the following information available for accruals for the year ended December 31, 2019. The company adjusts its accounts annually. 1. The December utility bill for $485 was unrecorded on December 31. Kingbird paid the bill on January 11. 2. Kingbird is open 7 days a week and employees are paid a total of $3,990 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. 3. Kingbird signed a $51,600, 5% bank loan on November 1, 2018, due in 2 years. Interest is payable on the first day of each following month. 4. Kingbird receives a fee from Pizza Shop next door for all pizzas sold to customers using Kingbird’s facility. The amount owed for December is $340, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Kingbird rented some of its unused warehouse space to a client for $6,840 a month, payable the first day of the following month. It received the rent for the month of December on January 2.
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Kingbird, Inc. has the following information available for accruals for the year ended December 31,...
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