Question

Homework: SLO Project Score: 0 of 10 pts 2 of 6 (0 complete) HW Score: 0%, P3-42A (similar to) Question Journalize the adjusting entry needed at December 31, the end of the current accounting year, for each of the following independent cases affecting Mountain Mania, Inc. No other adjusting entries have been made for the year. (Record debits first, then credits. Exclude explanations from any journal entries.) A (Click the icon to view the independent cases.) a. Prior to making the adjusting entry on December 31, the balance in Prepaid insurance is $1,200. Mountain Mania, Inc. pays liability insurance each year on May 1. Journal Entry Date More Info Accounts Debit 0 Credit Dec a. Prior to making the adjusting entry on December 31, the balance in Prepaid insurance is $1,200. Mountain Mania, Inc., pays liability insurance each year on May 1. b. Mountain Mania, Inc., pays employees each Friday. The amount of the weekly payroll is $12,500 for a five-day workweek. December 31, the fiscal year-end, is a Thursday. c. Mountain Mania, Inc., received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $770 and will be collected next year. d. The beginning balance of Supplies was $1,100. During the year, $4,200 of supplies were purchased. At December 31, the supplies on hand total $1,900. e. During the year, Mountain Mania, Inc., received $14,500 in advance for services to be provided at a later date. As of December 31, Mountain Mania, Inc., earned $7,100 of the total fees received in advance during the current year. f. Depreciation for the current year includes Vehicles, $2,550, and Equipment, $1,700. Print Done

Answer 1

	Account Titles	Debit	Credit
a	Insurance Expense	$            800		=1200/12*8
	Prepaid Insurance		$             800
	(Prepaid insurance expired during the period)
b	Salaries Expense	$       10,000		=12500/5*4
	Salaries Payable		$        10,000
	(Salaries accrued but not paid)
c	Interest Receivable	$            770
	Interest Revenue		$             770
	(Interest accrued but not collected)
d	Supplies Expense	$         3,400		=1100+4200-1900
	Supplies		$          3,400
	(Supplies consumed during the period)
e	Deferred Revenue	$         7,100
	Service Revenue		$          7,100
	(Revenue earned for advance received)
f	Depreication Expense - Vehicle	$         2,550
	Accumulated Depreciation - Vehicle		$          2,550
	Depreication Expense - Equipment	$         1,700
	Accumulated Depreciation - Equipment		$          1,700