Question

E4-12 Recording Transactions Including Adjusting and Closing Journal Entries [LO 4-2, LO 4-5] The following accounts are used by Mouse Potato, Inc., a computer game maker. Codes Accounts Accounts Receivable Accumulated Depreciation Cash Deferred Revenue Depreciation Expense Equipment Interest Expense Interest Payable Accounts Interest Revenue Notes Payable (long-term) Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Service Revenue Supplies Supplies Expense Required: For each of the following Independent situations, give the journal entry by selecting/entering the appropriate code(s) and amount(s). We've done the first one for you as an example. Independent Situations Debit Credit Code Amount Code Amount $ 400 M $ 400 a. Accrued wages, unrecorded and unpaid at year-end. S400 L b. Service revenue collected in advance. 5600 c. At year-end, interest on notes payable not yet recorded or paid $220 d. Depreciation expense for year. $1,000 e. Service revenue earned but not yet collected at year-end. $1,000. Balance in Supplies account, $400; supplies on hand at year-end. $150. Adjusted balance at vear-end in Service Revenue account, $75,000. Give the journal entry to close this one account at year-end.

Answer 1

Classification

	Independent situations	Code	Amount	Code	Amount
a	Accrued wages, unrecorded and unpaid at year end $400	L	$400	M	$400
b	Service revenue collected in Advance $600	C	$600	D	$600
c	At year end Interest on notes payable not yet recorded on paid $220	G	$220	H	$220
d	Depreciation expense for year $1000	E	$1000	B	$1000
e	Service revenue earned but not yet collected at year end $1000	A	$1000	N	$1000
f	Balance in Supplies account $400 supplies on hand at year end $150	P	$250	O	$250
g	Adjusted balance at year end in service revenue account $75000 Give the journal entry to close this one account at year end	N	75000	K	75000