Question

a. Wages of $9,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $12,040. c. The Office Supplies account had a $460 debit balance at the beginning of the year. During the year, $5,110 of office supplies are purchased. A physical count of supplies at December 31 shows $561 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31. View transaction list Journal entry worksheet 1 2 3 4 5 6 > Wages of $9,000 are earned by workers but not paid as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal

Answer 1

Transaction	General Journal	Debit	Credit
a	Wages expense	$9,000
	Wages payable		$9,000
	( To record wages expense)
b.	Depreciation expense	$12,040
	Accumulated depreciation - equipment		$12,040
	( To record depreciation expense)
c.	Office supplies expense	$4,999
	Office supplies		$4,999
	( To record office supplies expense)
d.	Insurance expense	$1,600
	Prepaid insurance		$1,600
	( To record insurance expense)
e.	Interest receivable	$950
	Interest revenue		$950
	( To record interest revenue)
f.	Interest expense	$5,000
	Interest payable		$5,000
	( To record interest expense)

c.

Beginning supplies = $460

Supplies purchased = $5,110

Ending supplies = $561

Supplies expense =Beginning supplies + Supplies purchased- Ending supplies

= 450+5,110-561

= $4,999

d.

Prepaid insurance, beginning = $5,000

Prepaid insurance, ending = $3,400

Insurance expense =Prepaid insurance, beginning -Prepaid insurance, ending

= 5,000-3,400

= $1,600

Kindly comment if you need further assistance. Thanks‼!