Question

On December 31, adjusting information for Whispering Winds Corp. is as follows:

1. Estimated depreciation on equipment is $3,550.

2. Property taxes amounting to $2,680 have been incurred but are unrecorded and unpaid.

3. Employee wages that have been earned by employees but are unpaid and unrecorded amount to $3,910.

4. The Service Revenue account includes amounts that have been paid by customers for services that have not yet been completed. The amount has been determined to be $5,080.

5. Interest of $135 on a $25,000 note payable has not been recorded or paid.

Answer 1

Credit No 1 Debit $3,550 Account titles and explanation Depreciation expense Accumulated depreciation- equipment $3,550 2 $2,680 Property tax expense Property tax payable $2,680 3 $3,910 Wages expense Wages payable $3,910 4 $5,080 Service revenue Unearned service revenue $5,080 5 $135 interest expense Interest payable $135