Question

Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available.

a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6.

b. Office supplies on hand at January 1 of the current year totaled $450.00. Office supplies purchased and debited to office supplies during the year amounted to $500. The year-end count showed $275 of supplies on hand.

C. One-fourth of the basement space rented to Kathy’s Specialty Shop for $560 per month, payable monthly. At the of the current year. The rent for November and December had not been collected or recorded. Collection is expected in January of the next year.

d. The store used delivery equipment all year that cost $60,500, $12,100 was the estimated annual depreciate.

e. On July 1 of the current year, a two-year insurance premium amounting to $2,400 was paid in cash and debited in full to prepaid insurance coverage began July 1 of the current year.

f. the remaining basement of the store is rented for $1600 per month to another merchant. M Carlos. Inc Carlos sell compatible merchandise. on November 1 of the current year. The store collected six months rent in the amount of $9,600 in advance from Carlos; it was credited in full unearned rent revenue when collected.

g. Trotman variety store operates a repair shop to meet its own needs, the shop also does repairs for M. Carlos. At the end of the current. Carlos had not paid $800 for completed repairs . this amount has not yet been recorded as repair shop revenue, collection is expected during January of next year.

Required Information

1. Identify each of the transaction as differed expense, accrued revenue, or accrued expense.

Entry

Wages earned by employees during December, unpaid and unrecorded at December 31 amount to $2700. The last payroll was December 28; the next payroll will be January 6

Answer 1

Answer to Part 1.

No.	Classification
a.	Accrued Expense
b.	Deferred Expense
c.	Accrued Revenue
d.	Deferred Expense
e.	Deferred Expense
f.	Unearned Revenue
g.	Accrued Revenue