Carla Vista Company has a September 30 fiscal year end and
prepares adjusting entries on an annual basis. The trial balance
included the following selected accounts:
Additional information for its September 30, 2021, year-end
|1.||Carla Vista has a two-year, 3.5% note receivable for $4,800 that was issued on April 1, 2021. Interest is payable every six months, on October 1 and April 1. Principal is payable at maturity. Carla Vista collected the correct amount on October 1, 2021.|
|2.||Accrued salaries as at September 30, 2021, were $2,300. Payroll totalling $2,830 was paid on October 2, 2021.|
|3.||Carla Vista has a five-year, 5% note payable for $81,600 issued in 2019. Interest is payable quarterly on January 31, April 30, July 31, and October 31 each year. Carla Vista paid the correct amounts in 2021.|
|4.||Depreciation expense for the year ended September 30, 2021, was $4,650.|
1) Prepare reversing journal entries on October 1, 2021, as appropriate.
2) Post to T accounts
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