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Pina Colada Company has the following balances in selected accounts on December 31, 2022.
Accounts Receivable
$ 0
Accumulated Depreciation—Equipment
0
Equipment
9,240
Interest Payable
0
Notes Payable
13,200
Prepaid Insurance
2,772
Salaries and Wages Payable
0
Supplies
3,234
Unearned Service Revenue
39,600
All the accounts have normal balances. The following information has been gathered at December 31, 2022.

1. Pina Colada Company borrowed $13,200 by signing a 12%, 1-year note on September 1, 2022. Interest will be paid when the note is repaid.
2. A count of supplies on December 31, 2022, indicates that supplies of $1,188 are on hand.
3. Depreciation on the equipment for 2022 is $1,320.
4. Pina Colada paid $2,772 for 12 months of insurance coverage on June 1, 2022.
5. On December 1, 2022, Pina Colada collected $39,600 for consulting services to be performed evenly from December 1, 2022, through March 31, 2023.
6. Pina Colada performed consulting services for a client in December 2022. The client will be billed $5,544.
7. Pina Colada pays its employees total salaries of $11,880 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2022.

Sagot :

abiolataiwo2015

The appropriate journal entries to record the transactions are: Debit Interest expense $528; Credit Interest payable $528.

Journal entries

Pina Colada Company journal entries

Debit Interest expense $528

Credit Interest payable $528

($13,200×12%×4/12)

Debit Depreciation expenses  $1,320

Credit Accumulated depreciation  equipment $1,320

Debit  Supplies expenses $2,044

Credit Supplies 2044

(3234-1,188)

Debit Insurance expenses $1,617

Credit Prepaid insurance $1,617

($2,772×7/12)

Debit Unearned service revenue $9,900

Credit Service revenue $9,900

($39,600×1/4)

Debit Accounts Receivable  $5,544

Credit Service Revenue $5,544

Debit  Salaries and wages expenses $7,128

Cred it Salaries and wages pay $7,128

($11,880×3/5)

Therefore the appropriate journal entries to record the transactions are: Debit Interest expense $528; Credit Interest payable $528.

Learn more about journal entries here:https://brainly.com/question/14279491

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