Prepare adjusting journal entries for the following transact…
Prepare adjusting journal entries for the following transactions that occurred during fiscal 2024 assuming Kids Klub follows the deferral method. Construction of the building was quick and completed on July 1, 2024. The total cost of construction was $812,000. The building is expected to be used for the next 16 years and has no residual value. At July 1st, Kids Klub recorded the new asset as follows: 2024 Date Account Titles Debit Credit 1-Jul Building 812,000 Cash 812,000 At the December 31st year end, amortization is to be recorded on the building using the straight-line method, prorated to the nearest whole month. Year-End 2024 Date Account Titles Debit Credit 31-Dec Provide the account name in the first space below. Provide the amount in the third space below. Provide the account name in the second space below. Explanation: To record annual amortization for the building. At the December 31st year end, the organization also needs to ensure they amortize deferred contribution revenue related to the restricted government grant that was used to construct the building. Year-End 2024 Date Account Titles Debit Credit 31-Dec Provide the account name in the fourth space below. Provide the amount in the sixth space below. Provide the account name in the fifth space below. Explanation: To amortize deferred contribution revenue related to the restricted funds used for building construction. When choosing account names, refer to the listing of accounts that was provided at the top of the quiz. Ensure you spell the account name properly.