Ask Question
22 June, 15:44

Manning Manufacturing Inc. had the following items that require adjustment at year end.

a. Salaries of $5,320 that were earned in December are unrecorded and unpaid.

b. Used $1,970 of utilities in December, which are unrecorded and unpaid.

c. Interest of $925 on a note payable has not been recorded or paid.

Required:

1. Prepare the adjusting entries needed at December 31.

2. What is the effect on the? nancial statements if these adjusting entries are not made?

+1
Answers (1)
  1. 22 June, 16:03
    0
    1. a. Debit Salaries $5,320

    Credit Accrued Salaries $5,320

    Being accrued salaries for December 31

    b. Debit Utilities $1,970

    Credit Accrued Utilities $1,970

    Being accrued Utilities for December 31

    c. Debit Interest $925

    Credit Accrued Interest $925

    Being accrued Interest note payable for December 31

    2. Income statement will be overstated by the sum of $8,215

    Explanation:

    The are the adjusting entries needed at December 31.

    1. a. Debit Salaries $5,320

    Credit Accrued Salaries $5,320

    Being accrued salaries for December 31

    b. Debit Utilities $1,970

    Credit Accrued Utilities $1,970

    Being accrued Utilities for December 31

    c. Debit Interest $925

    Credit Accrued Interest $925

    Being accrued Interest note payable for December 31

    2. The effect on the financial statements if these adjusting entries are not made is that the income statement will be overstated by the sum of $8,215, Below is the computation:

    Salaries $5,320

    Utilities $1,970

    Interest $925

    Total expenses $8,215
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Manning Manufacturing Inc. had the following items that require adjustment at year end. a. Salaries of $5,320 that were earned in December ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers