Question

Exercise 3-1 Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $16,000. b. The Prepaid Insurance account had a $7000 debit balance at December 31 before adjusting for the costs of any expired coverage An analysis of the company's insurance policies showed that $1700 of unexpired insurance coverage remains c. The Office Supplies account had a $280 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 $330 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 $4.900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,200 of prepaid rent had expired f. Wage expenses of $6,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 3Mor each of these separate situations View transaction list Journal entry worksheet > < 2 5 6 Depreciation on the company's equipment for the year is computed to be $16,000 Note: Enter debits before credits PER 1 of 15 !! Next >

Answer 1

Adjusting entry

No	General journal	Debit	Credit
1	Depreciation expense	16000
	Accumulated depreciation-equipment		16000
2	Insurance expense (7000-1700)	5300
	Prepaid insurance		5300
3	Office supplies expense (280+2680-330)	2630
	Office supplies		2630
4	Unearned revenue	8000
	Revenue earned		8000
5	Insurance expense	3200
	Prepaid insurance		3200
6	Wages expense	6000
	Wages payable		6000