Question

At the end of December (the fiscal year end), Cassel Accounting had the following adjustments. (NOTE: Depreciation expense is only recorded at year-end; all other adjustments are recorded monthly.) a. The insurance policy was renewed on 11/1/20 for 6 months at a cost of $3,900. $6,400 of the amounts received in advance from clients are still unearned. b. Received a utility bill for December for $680. | Interest has accrued on both of the notes. The $30,000 note was taken out on 7/1/20 and is for 9 months at 6% interest. | Of the $8,200 received from the client on 12/20, $3,200 is still unearned as of 12/31. | Advertising services performed on 12/27 have not yet been billed. The client owes $5,900. $2,350 of supplies were still on hand at 12/31. The equipment is being depreciated over 10 years using the straight-line method with no salvage value. The equipment on the books at 11/30 was purchased on 1/1/19. c | - | Record the salary of $16,000 owed to Mrs. DeWitt for December. She receives her check on the first day of the following month. Her FICA tax rate is also 7.65% and she has 15% for Federal income tax and 8% for State income tax deducted from her check. Record the December wages earned and taxes owed by Sallie since the last pay period. (NOTE: round to whole dollars if necessary.). Record the employer's share of FICA tax on all salaries/wages payable.

Prepare the adjusted journal entries

Answer 1

Date	Account Titles	Debit	Credit
		$	$
a.	Insurance Expense ( $ 3,900 / 6)	650
	Prepaid Insurance		650
b.	Unearned Service Revenue $ ( 19,900 - 6,400)	13,500
	Service Revenue		13,500
c.	Utilities Expense	680
	Utilities Payable		680
d.	Interest Expense ( $ 30,000 x 6 % x 1/12 )	150
	Interest Payable		150
e.
f.	Accounts Receivable	5,900
	Service Revenue		5,900
g.	Supplies Expense	4,250
	Supplies		4,250
h.	Depreciation Expense	11,700
	Accumulated Depreciation : Equipment		11,700
i.	Salaries and Wages Expense	16,000
	FICA Tax Payable		1,224
	Federal Income Taxes Payable		2,400
	State Income Taxes Payable		1,280
	Salaries and Wages Payable		11,096
j.		???
			???