Question

Below is the unadjusted trial balance for Osbourne's Animal Sanctuary which has been in operation since January 1, 2019. Prepare the journal entries for the additional information given below at December 31, 2019. Use the designated space in the Solution Packet. (20 points) 20,000 15,000 7,000 4,500 80,000 Osbourne's Animal Sanctuary Unadjusted Trial Balance December 31, 2019 Cash Accounts Receivable Prepaid Insurance Supplies Equipment A/D Equipment Accounts Payable Salaries Payable Unearned Consulting Revenue Osbourne's, Capital Consulting Revenue Depreciation Expense - Equipment Supplies Expense Salaries Expense Insurance Expense Totals 10,000 7,500 20,000 100,000 11,000 137,500 137,500 dditional Information: a. The Company has determined that $2,000 of unexpired Prepaid Insurance remains at December 31, 2019. b. The Company purchased $80,000 in equipment on January 1, 2019. The equipment is expected to have a 10 year life with no residual value. c. An inventory count at December 31, 2019 showed that only $3,000 of supplies remain. d. As of December 31, 2019, the Company earned $10,000 in consulting revenues; which it will bill in January 2020. e. The Company earned $5,000 of its Unearned Consulting Revenue as of December 31, 2019. f. Salaries earned for the last week of December 2019, but not yet paid, is $500.

Answer 1

Adjusting entries

No	General Journal	Debit	Credit
a	Insurance expense (7000-2000)	5000
	Prepaid insurance		5000
b	Depreciation expense (80000/10)	8000
	Accumulated depreciation-equipment		8000
c	Supplies expense (4500-3000)	1500
	Supplies		1500
d	Account receivable	10000
	Consulting revenue		10000
e	Unearned consulting revenue	5000
	Consulting revenue		5000
f	Salaries expense	500
	Salaries payable		500