Question

why the 5th is wrong ?how to fix it

Return to question Exerc se 3-1 Preparing adjusting entries LO P1, P2, P3 a. Depreation on the company's equipment for the year is computed to be $15,000. b. The Pro insurance account had a $9,000 debit balance at December 31 before adjusting for the costs of any expired coverage An analyof the company's insurance policies showed that $1.290 of unexpired insurance coverage remains. C. The Office Supplies account had a $570 debit balance at the beginning of the year, and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $673 of supplies available. d. Two-thirds of the work related to $12,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,610 of prepaid rent had expired. f. Wage expenses of $3,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations. ® Answer is complete but not entirely correct. Wwwww Credit No Transaction Debit 15,000 General Journal Depreciation expense-Equipment Accumulated depreciation Equipment 15.00 7.710 b. Insurance expense Prepaid insurance 7.710

Answer 1

The expense is rent and not insurance. Rent expense should be debited and Prepaid rent should be credited.

No	Transaction	General Journal	Debit	Credit
5	e.	Rent expense	$4,610	-
		Prepaid rent	-	$4,610