Question

U nushed=true&cid=57971248 centerwineyes hapter 3: Problems 1 of 5 (1 complete) 0 More Info al entry table sday. Lindy a. Each Friday, Lindy pays employees for the current week's work. The amount of the weekly payroll is 59.000 for a five-day workweek. This year December 31 falls on a Tuesday. Lindy will pay its employees on January 3. b. On January 1 of the current year, Lindy purchases an insurance policy that covers two years. $6,000 c. The beginning balance of Office Supplies was $3.400. During the year, Lindy purchased office supplies for $5, 100, and at December 31 the office supplies on hand total $3,000 d. During December. Lindy designed a landscape plan and the client prepaid $4.500. Lindy recorded this amount as Uneamed Revenue. The job will take several months to complete, and Lindy estimates that the company has earned 40% of the total revenue during the current year e. At December 31. Lindy had earned $6,000 for landscape services completed for Brimmfield Appliances Brimmfield has stated that it will pay Lindy on January 10 f. Depreciation for the current year includes Equipment, $3.000 and Trucks, $2.000 g. Lindy has incurred $300 of interest expense on a $600 interest payment due on January 15 Print Done

Answer 1

	Date	Account titles and explanation	Debit	Credit
(a)	31-Dec	Wages expense	$3,600		(9000/5*2)
		Wages payable		$3,600
		(wages payable accrued)
	03-Jan	Wages payable	$3,600
		Wages expense	$5,400
		Cash		$9,000
		(Wages paid)
(b)	31-Dec	Insurance expense	$3,000		(6000/2)
		Prepaid insurance	$3,000		(6000/2)
		Cash		$6,000
		(insurance paid)
(c )	31-Dec	Supplies expense	$5,500		(3400+5100-3000)
		Supplies A/c		$5,500
		(supplies expense booked)
(d)	31-Dec	Unearned revenue	$1,800
		Revenue		$1,800
		(4500*40% revenue booked for current year)
(e )	31-Dec	Account receivable A/c	$6,000
		Revenue		$6,000
		(credit sale made)
(f)	31-Dec	Depreciation expense - equipment	$3,000
		Depreciation expense - Truck	$2,000
		Accumulated depreciation - equipment		$3,000
		Accumulated depreciation - Truck		$2,000
		(Depreciation charges on assets)
(g)	15-Jan	Interest expense	$300
		Interest payable	$300
		Bank		$600
		(interest payment on 15 jan for $600 out of which 300 was for expense)