Question

re the income statement, the statement of owner's equity, and the classified 6. Prepare the income stateme balance sheet in report form. 1. Prepare the closing entries, and post to the T-accounts 8. Prepare a post-closing trial balance. 44-34A Preparing adiusting entries and reversing entries Learning Objective 7 Appendix 4A ne uradjusted trial balance and adjustment data of Martha's Motors at December 31, 2018, follow MARTHA'S MOTORS Unadjusted Trial Balance December 31, 2018 Credit Debit $ 4200 27,200 1.000 2.400 52,400 5 34,600 15,000 Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Wages Payable Unearned Revenue Eaglin, Capital Eaglin, Withdrawals Service Revenue Depreciation Expense Equipment Wages Expense Insurance Expense Utilities Expense Supplies Expense Total 7.900 18,500 3,100 17,200 1.600 1,300 $ 93,200 $ 93,200 Adjustment data at December 31, 2018: a. Depreciation on equipment, $2,100. V b. Accrued Wages Expense, $1,100. V c. Office Supplies on hand, $500. d. Prepaid Insurance expired during December, $600. e. Unearned Revenue earned during December, $4,800. f. Accrued Service Revenue, $1,300. 2019 transactions: On January 4, Martha's Motors paid wages of $1,900. Of this, $1,100 related to the accrued wages recorded on December 31. On January 10, Martha's Motors received $1,500 for Service Revenue. Of this $1,300 is related to the accrued Service Revenue recorded on December 31.

Answer 1

	Adjusting Entries
Ref.	Account Title	Debit	Credit
31-Dec-18
a.	Depreciation expense	2100
	Accumulated Deprecaition-equipment		2100
b.	Wages expense	1100
	Wages payable		1100
c.	Supplies Expense	500
	Office Supplies		500
	(1000-500)
d.	Insurance expense	600
	Prepaid Insurance		600
e.	Unearned revenues	4800
	Service Revenue		4800
f.	Accounts Receivable	1300
	Service Revenue		1300
	Reversing Entries
2019
4-Jan	Wages payable	1100
	Wages expense	800
	Cash		1900
10-Jan	Cash	1500
	Accounts Receivable		1300
	Service Revenue		200