Question

Consider the following situations for Galetown Welding Services Click the icon to view the situations) Joumalize the adjusting entry needed on December 31 for each shtuation. Use the letters to label the maleries Record biss the credited the planation on the lastne of the journal art att a. Depreciation for the current year Includes Equipment, $2,500 Date Accounts and Explanation (a) Dec 31 Debit Credit

Answer 1

Date	Account Titles & Explanation	Debit	Credit
(a) Dec 31	Depreciation Expense—Equipment	$ 2,500
	Accumulated Depreciation—Equipment		$ 2,500
	To record depreciation on equipment.
Date	Account Titles & Explanation	Debit	Credit
(b) Dec 31	Salaries Expense ($1400/7 * 4)	$     800
	Salaries Payable		$     800
	To accrue salaries expense.
Date	Account Titles & Explanation	Debit	Credit
(c) Dec 31	Supplies Expense ($2600 + $3400 - $1400)	$ 4,600
	Office Supplies		$ 4,600
	To record office supplies used.
Date	Account Titles & Explanation	Debit	Credit
(d) Dec 31	Insurance Expense ($6000/24 * 3)	$     750
	Prepaid Insurance		$     750
	To record insurance expense.
Date	Account Titles & Explanation	Debit	Credit
(e) Dec 31	Unearned Revenue	$ 3,000
	Service Revenue		$ 3,000
	To record service revenue that was collected in advance.
Date	Account Titles & Explanation	Debit	Credit
(f) Dec 31	Interest Expense	$     160
	Interest Payable		$     160
	To accrue interest expense.
Date	Account Titles & Explanation	Debit	Credit
(g) Dec 31	Accounts Receivable	$ 8,000
	Service Revenue		$ 8,000
	To accrue service revenue.