Question

Consider the following situations for Brunswick Welding Services Click the icon to view the situations) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits Select the explanation on the last line of the journal entry table) a. Depreciation for the current year includes Equipment, $2.900 Date Accounts and Explanation (a) Dec 31 Debat Credit b. Each Monday. Brunswick pays employees for the previous week's work. The amount of weekly payrolls 54200 for a seven-day work Monday to Sunday. This year, December 31 falls on Thursday Date Accounts and Explanation Debit Credit (b) Dec 31 Choose from any ist or enter a Torinth

Answer 1

The journal entries to be booked will be:

Debit ($) Credit ($) 2,900 2,900 2,400 2,400 4,900 4,900 780 Date Account Description 31/Dec Depreciation Expense Accumulated Depreciation - Equipment (Depreciation expense booked for the period) 31/Dec Salaries Expenses Salaries Payable (Salaries expense unpaid for the week) 31/Dec Supplies Expense Supplies (Supplied used during the period) 31/Dec Insurance Expense Prepaid Insurance (Insuance expense booked for Oct-Dec period) 31/Dec Unearned Revenues Service Revenue (Unearned revenue earned during the period) 31/Dec Interest Expense Interest Payable (Interest expense unpaid for the period) 31/Dec Accounts Receivables Service Revenue (Billing customers for services provided) 780 3,600 3,600 350 350 6,000 6,000

Workings

Rationale and workings of above journal entries are given below

Date Account Description Debit ($) Credit ($) working Rationale 31/Dec Depreciation Expense 2,900 Depreciation expense will increase and also accumulated depreciation Accumulated Depreciation - Equipment 2,900 (Depreciation expense booked for the period) 31/Dec Salaries Expenses 2,400 -4200*4/7 Salaries expense incurred but not paid from Mon to Thu will be booked Salaries Payable 2,400 as an expense and a liability will be created (Salaries expense unpaid for the week) 31/Dec Supplies Expense 4,900 =2900+3000-1000 supplies consumed during the period are booked as expense Supplies 4,900 (Supplied used during the period) 31/Dec Insurance Expense 780 =6240*3/24 Insurance expense needs to be booked for Oct-Decie 3 months Prepaid Insurance 780 (Insuance expense booked for Oct-Dec period) 31/Dec Unearned Revenues 3,600 given Revenue earned during the period will reduce unearned revenue Service Revenue 3,600 liability and increase revenues (Unearned revenue earned during the period) 31/Dec Interest Expense 350 =350-0 Interest expense incurred but not paid will be booked as an expense Interest Payable 350 and a liability will be created (Interest expense unpaid for the period) 31/Dec Accounts Receivables 6,000 given Revenue earned during the period will increase and since customers Service Revenue 6,000 have been billed this will create receivables for the company (Billing customers for services provided)

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