Question

Exercise 3-6 Preparing adjusting entries LO P1, P2, P3, P4 a. Depreciation on the company's wind turbine equipment for the year is $5,100. b. The Prepaid Insurance account for the solar panels had a $2,100 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $650 of unexpired insurance coverage remains at year-end. c. The company received $3,300 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $1,300 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $410 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, prepare the required December 31 year-end adjusting entries. View transaction list Journal entry worksheet < 1 2 3 4 5 Depreciation on the company's wind turbine equipment for the year is $5,100. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Transaction	General Journal	Debit	Credit
a.	Depreciation expense	5100
	Accumulated depreciation-equipment		5100
	(To record depreciation)
b.	Insurance expense ($2100 - $650)	1450
	Prepaid insurance		1450
	(To record expired prepaid insurance)
c.	Unearned revenue	1100
	Consulting revenue ($3300 x 1/3)		1100
	(To record consulting revenue earned)
d.	Wagess expense	1300
	Wages payable		1300
	(To record wages incurred but not yet paid)
e.	Interest receivable	410
	Interest revenue		410
	(To record interest earned but not received)