Question

wg that Modish records the cash receipt of unearned revenue by initially crediting a liability account. Post the adjusting entry the Unearned Revenue and Service Revenue T-accounts. Make sure to include she beginning balance and additional unearned revenue in the Unearned Revenue T-account. Record the adjusting entry assuming that Modish records the cash receipt of unearned revenue by initially crediting a revenue account. Post the adjusting entry to the Unearned Revenue and Service Revenue T-accounts. Make sure to include the beginning balance in the Unearned Revenue T-account and the additional unearned revenue in the Service Revenue T-account 3. Compare the ending balances of the T-accounts under both approaches. Are they the same? roblems Group A -3-33A Journalizing adjusting entries and subsequent journal entries Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3. b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000.

Answer 1

1.

Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laughter Landscaping

Trn.	Account Titles	Debit	Credit
a	Salaries expense	$3,200
	Salaries payable [($8,000/5 days) × 2 days]		$3,200
b	Insurance expense	$4,000
	Prepaid Insurance ($8,000/2 years)		$4,000
c	Office supplies expense	$8,400
	Office supplies ($4300+$5600-$1500)		$8,400
d	Unearned revenue ($6500 × 40%)	$2,600
	Earned revenue		$2,600
e	Accounts receivable	$3,000
	Earned revenue		$3,000
f	Depreciation expense	$5,200
	Accumulated depreciation - Equipment		$3,000
	Accumulated depreciation - Truck		$2,200
g	Interest expense	$250
	Interest payable		$250

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2.

Journalize the subsequent journal entries for adjusting entries a,d, and g.

Trn.	Account Titles	Debit	Credit
a	Salaries payable	$3,200
	Salaries expense ($8000/5 days) × 3 days	$4,800
	Cash		$8,000
d	Unearned revenue ($6500-$2600)	$3,900
	Earned revenue		$3,900
g	Interest payable	$250
	Interest expense	$300
	Cash		$550