Question

Chloe Company a cleaning firm, has the following account balance before adjustments on December 31, 2018

Knowing that Chloe company prepares its financial statement yearly, and the $20,000 equipment was purchased on June 1, 2017 with a useful life of 4 years and $800 salvage value, the adjusted balance for accumulated depreciation on December 31, 2018 would be *

$8,800

$4,800

$2,800

$7,600

Chloe Company has performed $600 of Cleaning services for a client but has not billed the client as of December 31, 2018. What adjusting entry must the company prepare? *

Debit Cash and credit Unearned Revenue $600

Debit Unearned Revenue and credit Service Revenue $60

Debit Accounts Receivable and credit Service Revenue $600

None of the above

Chloe Company signed a six-month note payable in the amount of $4,000 on September 1, 2018. The note requires interest at an annual rate of 9%. The amount of interest to be accrued on December 31, 2018 is: *

$240

$120

$720

$180

On December 31, 2018, wages accrued were $5,000. The adjusted balance for salaries & wages expense on December 31, 2018 would be: *

$3700

$21,033

$22,333

$0

Answer 1

1. Answer is $ 7600

Depreciation calculation for 7 months in 2017 is

Yearly Depreciation 20,000-800/4 =19200/4=4800

4800*7 months/12 months=2800

Depreciation for 2018

4800

Total accumulated dpreciation =2800+4800=$7600

2. Answer

Debit Accounts Receivable and credit Service Revenue $600

Assume that client not paid the amount

3. Interst calculation

Full year interest = 4,000*9/100= 360

Interest for 4 months starting from sep to december = 360*4/12=120

Anser is $ 120

4. Question is incomplete

What you can do is add the 5000 to the current wages and salaries in the P&L

For example: before P&L salary wages is 16,033 then you can accrued wages 5000 to that then adjusted balance will be 21,033