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 $18.000. b. The Prepaid Insurance account had a $6.000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. c. The Office Supplies account had a $700 debit balance at the beginning of the year, and $3.480 of office supplies were purchased during the year. The December 31 physical count showed $300 of supplies available. d. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $6,800 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $5,800 of prepaid rent had expired. f. Wage expenses of $3,200 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations. View transaction list Journal entry worksheet 1 3 4 5 6 Depreciation on the company's equipment for the year is computed to be $18,000. Note: Enter debits before credits < Prey 1 of 6 Next >

Answer 1

Answer Adjusting Towgal Entries Adjusting journal emblies are the Pobies which segregabe income 99d expence to the relative accounting financial period Adjusting Journal Entries are passed at the ear of Accounting period. ° Adjusting journal eabies are passed in accordance of the Elccounting priociale. Of acexual concept, Accougl Gaceply tells Pxpense and income relobos to a particular period shoyld have to be recorded in such partiaku perlah

Adjusting Joyrnal Entries Account Title and explanation Debit Credit a./ Depreciation Expense - Equipment To Accumulates Depreciatiog - Equipment e to record depreciation expense) Or 18000 18000 Dr. 4900 5. Intrance Expense Ale (CoCo -1100) 4906 3880 10000 10000 To Prepaid Insurance Alc. (To record insurance expense) c. office supplies Expegre (700 +3480-300) or (3880 To office supplies (To record supplies expense) d. Unearned Reveque A/c (15000 X 2/3) Dr. To Revenue Ale (To record revenue come!) Rent Expense A/C €6800-1000) To Prepaid Rent Ale (To record rent expense) f./ wages Expense Ale To wages Payable Al (To recall wages expense) Dr. 15800 15800 Dr. 3200 3200