Question

Exercise 3-6 Preparing adjusting entries LO P1 a. Depreciation on the company's equipment for 2017 is computed to be $11,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,510 of unexpired insurance coverage remains. c. The Office Supplies account had a $230 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $271 of supplies available. d. One-third of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Insurance account had a $5,200 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $3,690 of coverage had expired. f. Wage expenses of $6,000 have been incurred but are not paid as of December 31, 2017 Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations. View transaction list Journal entry worksheet | 3 4 5 The prepaid insurance account had a $7,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,510 of unexpired insurance coverage remains. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

	General Journal	Debit	Credit
a	Depreciation expense—Equipment	11000
	Accumulated depreciation—Equipment		11000
b	Insurance expense	5490		=7000-1510
	Prepaid insurance		5490
c	Office supplies expense	2639		=230+2680-271
	Office supplies		2639
d	Unearned fee revenue	5000		=15000*1/3
	Fee revenue		5000
e	Insurance expense	3690
	Prepaid insurance		3690
f	Wages expense	6000
	Wages payable		6000