Solution:
1.Devin Wolf company borrowed$10,000 signing a 9% one year note on September 1,2017.
Debit | Credit | |
Cash | $10,000 | |
Notes payable | $10,000 |
2.) Account of supplies on December 31,2017, indicates that supplies of $900 are one hand.
Debit | Credit | |
Supplies Expenses | $1,550 | |
Supplies | $1,550 |
3.) Depreciation on the equipment for 2017 is $1,000.
Debit | Credit | |
Depreciation Expenses-Equipment | $1,000 | |
Accumulated Depreciation-Equipment | $1,000 |
4.) Devin wolf company paid $2,100 for 12 months of insurance coverage on June 1,2017.
2,100 × 7/12=1,225
Debit | Credit | |
Insurance Expense | $1,225 | |
Prepaid Expense | $1,225 |
5.) On December 1,2017 Devin wolf company collected$32,000 for consulting service to be performed from December 1,2017,through March 31,2018
32,000/4 months =8,000 per month
Debit | Credit | |
Unearned consulting revenue | $8,000 | |
Consulting Fees | $8,000 |
6.) Devin wolf performed consulting services for a client in December 2017.
The client will be billed $4,200
Debit | Credit | |
Accounts receivable | $4,200 | |
Consulting fees | $4,200 |
7.) Devin wolf company pays it's employees total salaries of $9,000 every Monday for the preceding 5-day week. On Monday, December 29,employees were paid for the week ending December 26.
All employees worked the last 3 days of 2017.
9,000/5×3 =5,400
Debit | Credit | |
Salaries Expenses | $5,400 | |
Salaries Payable | $5,400 |
E3-5 Devin Wolf Company has the following balances in selected accounts on December 31,2017. Accounts Receivable...
Prepare adjusting entries of the seven items decribed
below
E3-5 Devin Wolf Company has the following balances in selected accounts on December 31,2017. Accounts Receivable $-0- Accumulated Depreciation-Equipment-0- Equipment 7,000 nterest Payable -o- Notes Payable 10,000 Prepaid Insurance 2,100 Salaries and Wages Payable-0- Supplies 2,450 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31,2017 1, Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1, 2017....
E3-5 Devin Wolf Company has the following balances in selected accounts on December 31, 2017 -0- Accounts Receivable $ -0- Accumulated Depreciation Equipment -- Equipment 7,000 Interest Payable Notes Payable 10,000 Prepaid Insurance 2,100 Salaries and Wages Payable -- Supplies 2,450 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017 1. Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1, 2017. 2. A count...
E3-5 Devin Wolf Company has the following balances in selected accounts on December should adopt the achtily each statement as true or false. If false, indicate how to correct the statement. E3-2 On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the federal deficit (a) What is the...
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expense, or accrued revenue) is need December 53-5 Veme Cova Company has the following balances in selected accounts on September 1, mig entries Х 31, 2019. $ -O Accounts Receivable -O Accumulated Depreciation Equipment 7,000 Equipment -0- Interest Payable 10,000 Notes Payable 2,100 Prepaid Insurance -0- Salaries and Wages Payable 2,450 Supplies 30,000 Unearned Service Revenue All the accounts have normal balances. The information below has been gathered at December 31, 2019. 1. Verne Cova Company borrowed $10,000 by signing...
Sunland Company has the following balances in selected accounts on December 31, 2019. 0 8,000 Accounts Receivable Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue 9,900 2,820 0 2,100 32,000 All the accounts have normal balances. The information below has been gathered at December 31, 2019. 1. Sunland Company borrowed $9,900 by signing a 12%, one-year note on September 1, 2019. 2. A count of supplies on December 31, 2019, indicates...
Exercise 3-5 Verne Cova Company has the following balances in selected accounts on December 31, 2019. Accounts Receivable Accumulated Depreciation-Equipment 7,000 Equipment Interest Payable Notes Payable 10,000 Prepaid Insurance 2,100 Salaries and Wages Payable Supplies 2,450 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31, 2019. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2019. 1. A count of supplies on December 31, 2019,...