In each of the following transactions (a) through (c) for Romneyâs Marketing Company, use the threestep process given below to record the adjusting entry at year-end December 31, 2012. The process includes (1) determining if revenue was earned or an expense incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment. A. Estimated electricity usage at $290 for December; to be paid in January 2013.
B. On September 1, 2012, loaned $6,400 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 13%.
C. Owed wages to 14 employees who worked four days at $250 each per day at the end of December. The company will pay employees at the end of the first week of January 2013.