Question

Adjusting Entry Problem

I posted all entries that are possible.

Divtek's Variety Store is completing the accounting process for the year just ended on December 31, 2017 The transactions during 2017 have been journalized and posted. The following data with respect to adjusting entries are available: a. Wages earned by employees during December 2017, unpaid and unrecorded at December 31, 2017, amounted to $3,300. The last payroll was December 28; the next payroll will be January 11, 2018. b. Office supplies inventory at January 1, 2017, was $630. Office supplies purchased and debited to office supplies inventory during the year amounted to $450. The year-end count showed $341 of supplies on hand. C. One-fourth of the basement space is rented to Heald's Specialty Shop for $560 per month, payable monthly. On December 31, 2017, the rent for November and December 2017 had not been collected or recorded. Collection is expected January 10, 2018 d. The store used delivery equipment that cost $79,000; the estimated depreciation for 2017 was $15,800. e. On July 1, 2017, a two-year insurance premium amounting to $3,480 was paid in cash and debited in full to prepaid insurance. Coverage began on July 1, 2017. f. The remaining basement space of the store is rented for $1,410 per month to another merchant, M. Carlos Inc. Carlos sells compatible, but not competitive, merchandise. On November 1, 2017, the store collected six months' rent in the amount of $8,460 in advance from Carlos; it was credited in full to deferred rent revenue when collected. g. Divtek's Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M. Carlos. At the end of December 31, 2017, Carlos had not paid $640 for completed repairs. This amount has not yet been recorded as repair shop revenue. Collection is expected during January 2018.

Answer 1

Please read the remarks. In case you need any explanation feel free to comment

		Remarks
a	Accrued expense
b	Deferred expense	There are two approaches to this. If you see the purchase of inventory - that is a DEFERRED EXPENSE. But if you see as on December 31, it is an ACCRUED expense because inventory has already been used up. Only recording is left.
c	Accrued revenue
d	Deferred expense	For 2017 it is accrued, the remaining is deferred as on December 31
e	Deferred expense	For July to Dec it is accrued expense, the rest is still deferred as on December 31
f	Deferred revenue	For Nov and Dec, it is accrued revenue, the rest is still deferred as on December 31
g	Accrued revenue

Transaction	Particulars	Debit	Credit
a	Wages expense	$    3,300
	Wages Ppyable		$    3,300
b	Office supplies expense	$       739
	Office supplies inventory		$       739
c	Rent receivable	$    1,120
	Rent revenue		$    1,120
d	Depreciation expense	$ 15,800
	Accumulated depreciation - delivery equipment		$ 15,800
e	Insurance expense	$       870
	Prepaid insurance		$       870
f	Deferred rent revenue	$    2,820
	Rent revenue		$    2,820
g	Accounts receivables	$       640
	Repair shop revenue		$       640