Question

Journal entry worksheett

Note: Enter debits before credits.

1. Depreciation on the company’s equipment for 2017 is computed to be $14,000.

2. The prepaid insurance account had a $6,000 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 $780 of unexpired insurance coverage remains.

3.The Office Supplies account had a $380 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $448 of supplies available.

4. One-fifth of the work related to $10,000 of cash received in advance was performed this period.

5. The prepaid insurance account had a $5,100 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,320 of coverage had expired.

6. Wage expenses of $2,000 have been incurred but are not paid as of December 31, 2017.

	Transaction General Journal Debit Credit a.

Answer 1

Transaction	General Journal	Debit	Credit
a	Depreciation expense	$14,000
	Accumulated depreciation- Equipment		$14,000
	( To record depreciation expense)
b	Insurance expense	$5,220
	Prepaid insurance		$5,220
	( To record insurance expense)
c	Supplies expense	$2,612
	Supplies		$2,612
	( To record supplies )
d	Unearned service revenue	$2,000
	Service revenue		$2,000
	( To record revenue)
e	Insurance expense	$4,320
	Prepaid insurance		$4,320
	( To record insurance expense)
f	Wages expense	$2,000
	Wages payable		$2,000
	( To record wages expense)

b.

Insurance expense = Prepaid insurance, beginning - Prepaid insurance, ending

= 6,000-780

= $5,220

c.

Supplies expense = Beginning supplies + Supplies purchased - Ending supplies

= 380+2,680-448

= $2,612

d.

Service revenue earned = 10,000 x 1/5

= $2,000

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