Question

Journal entry worksheet < 1 2 3 Equipment costing $40,800 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,800 per year. Record the adjusting entry for depreciation at its year-end of December 31. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal

Consider the following transactions for a company: Equipment costing $40,800 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,800 per year. On June 30, the company lends its chief financial officer $48,000; principal and interest at 5% are due in one year. On October 1, the company receives $15,200 from a customer for a one-year property insurance policy. Deferred Revenue is credited. Required: For each item, record the necessary adjusting entry for the company at its year-end of December 31. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Answer 1

Adjusting entry

No	General Journal	Debit	Credit
1	Depreciation expense	6800
	Accumulated depreciation-equipment		6800
2	Interest receivable (48000*5%*6/12)	1200
	Interest revenue		1200
3	Deferred revenue (15200/12*3)	3800
	Revenue earned		3800