Question

a. Depreciation on the company's equipment for the year is computed to be $13,000. b. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's Insurance policies showed that $1,750 of unexpired Insurance coverage remains C. The Office Supplies account had a $510 debit balance at the beginning of the year, and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $602 of supplies available. d. One-fifth of the work related to $10,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,400 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,650 of prepaid rent had expired. f. Wage expenses of $2,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.

Answer 1

1	Depreciation expense - Equipment	13,000
	Accumulated Depreciation - Equipment		13,000
2	Insurance expense	4250
	Prepaid Insurance (6,000-1,750)		4250
3	Office supplies Expense	2588
	Office supplies (510+2680-602)		2588
4	Unearned fee revenue	2000
	Fee revenue (10,000*1/5)		2000
5	insurance Expense	3650
	Prepaid Insurance		3650
6	wages expense	2000
	Wages payable		2000