Question

Question 21 The trial balance and information for year-end adjustments for J. Olsen Company are as follows: Credit J.Olsen Company Trial Balance December 31, 2017 Account Title Debit Cash 15,700 Accounts Receivable 9,400 Office Supplies 6,000 Prepaid Insurance 1,500 Equipment 50,000 Accumulated Depreciation Equipment Accounts Payable Wages Payable J. Olsen, Capital Vilardi, Drawing 1,500 Service Fees Wages Expense 15,100 Rent Expense 7,800 Supplies Expense Utilities Expense 860 Insurance Expense Depreciation Expense-Equipment 107,860 10,000 5,400 29,460 63,000 107,860 Supplies on hand at year-end amounted to $420. b. The depreciation on equipment is $10,000 The Insurance expired on December 31,2017 $500 Wages earned by employees but not paid by year-end amounted to $900. 1. Prepare the necessary year-end adjustments on a 10-column work sheet (identify each adjustment by letter), and complete the adjusted trial balance column on the work sheet. 2. Prepare journal entries from the worksheet

Answer 1

Jan Olsen Attorney
Work sheet (partial)
For Year Ended December 31, 2017
Account title	Trial Balance		Adjustments				Adjusted Trial Balance
	Debit	Credit		Debit		Credit	Debit	Credit
Cash	$        15,700						$       15,700
Accounts receivable	$          9,400						$          9,400
Office Supplies	$          6,000				a	$      5,580	$             420
Prepaid Insurance	$          1,500				c	$          500	$          1,000
Equipment	$        50,000						$       50,000
Accumulated depreciation - equipment		$     10,000			b	$    10,000		$          20,000
Accounts payable		$        5,400						$            5,400
Wages payable		$               -			d	$          900		$                900
J. Olsen, Capital		$     29,460						$          29,460
J. Olsen, Drawing	$          1,500						$          1,500
Service Fees		$     63,000						$          63,000
Wages expense	$        15,100		d	$           900			$       16,000
Rent Expense	$          7,800						$          7,800
Supplies Expense	$                 -		a	$       5,580			$          5,580
Utilities Expense	$              860						$             860
Insurance expense	$                 -		c	$           500			$             500
Depreciation expense - equipment	$                 -		b	$     10,000			$       10,000
Total	$     107,860	$   107,860		$     16,980		$    16,980	$     118,760	$        118,760

General Journal
Date	Account title & explanation	Debit	Credit
Dec 31, 2017	Supplies expense	$           5,580
	Supplies		$          5,580
	(To record supply used during the period.) (6000-420)
Dec 31, 2017	Depreciation expense - equipment	$         10,000
	Accumulated depreciation - equipment		$       10,000
	(To record depreciation expense - equipment)
Dec 31, 2017	Insurance expense	$               500
	Prepaid insurance		$             500
	(To record expires Insurance.)
Dec 31, 2017	Wages expense	$               900
	Wages payable		$             900
	(To record wages expense this paid in future.)