Question

Required information [The following information applies to the questions displayed below.) Part 1 of 3 Dyer, Inc., completed its first year of operations on December 31, 2018. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: points $ 118,500 Skipped Income Statement, 2018 Rent Revenue Expenses: Salaries and Wages $ 29,400 Expense Repairs and Maintenance Expense 13,900 Rent Expense 9,900 Utilities Expense 4,900 Travel Expense 3,900 Total Expenses Income eBook Hint 62,000 $ 56,500 References You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $400 were not recorded or paid. b. The $490 telephone bill for December 2018 has not been recorded or paid. c. Depreciation of equipment amounting to $23,900 for 2018 was not recorded. d. Interest of $590 was not recorded on the notes payable by Dyer, Inc. e. The Rental Revenue account includes $4,900 of revenue to be earned in January 2019. f. Supplies costing $690 were used during 2018, but this has not yet been recorded. g. The income tax expense for 2018 is $7,900, but it won't actually be paid until 2019. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit

Answer 1

Adjusting entry

No	Transaction	General Journal	Debit	Credit
1	a	Salaries and wages expense	400
		Salaries and wages payable		400
2	b	Telephone expense	490
		Accrued expense payable		490
3	c	Depreciation expense	23900
		Accumulated depreciation-equipment		23900
4	d	Interest expense	590
		Interest payable		590
5	e	Rental revenue	4900
		Unearned rental revenue		4900
6	f	Supplies expense	690
		Supplies		690
7	g	Income tax expense	7900
		Income tax payable		7900