The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $5,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $85,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $22,400 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $16,800 for the fiscal year. Employee salaries for the month of June 2021 $17,500 will be paid on July 20, 2021.
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $5,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $85,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $22,400 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $16,800 for the fiscal year. Employee salaries for the month of June 2021 $17,500 will be paid on July 20, 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 3RE: Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that...
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The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare
- On December 1, 2020, the company paid its annual fire insurance premium of $5,200 for the year beginning December 1 and debited prepaid insurance.
- On August 31, 2020, the company borrowed $85,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021.
- Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $22,400 representing rent for the 2021 calendar year and credited deferred rent revenue.
Depreciation on the office building is $16,800 for the fiscal year.- Employee salaries for the month of June 2021 $17,500 will be paid on July 20, 2021.
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