Question

a. Depreciation on the company's equipment for the year is computed to be $13,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,760 of unexpired insurance coverage remains. c. The Office Supplies account had a $550 debit balance at the beginning of the year; and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $649 of supplies available. d. One-fifth of the work related to $10,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,500 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,740 of prepaid rent had expired. f. Wage expenses of $5,000 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 2 3 4 5 6 > Depreciation on the company's equipment for the year is computed to be $13,000. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Adjusting entries

Date	General Journal	Debit	credit
Dec 31	Depreciation expense	13000
	Accumulated depreciation-equipment		13000
Dec 31	Insurance expense (7000-1760)	5240
	Prepaid insurance		5240
Dec 31	Supplies expense (550+2680-649)	2581
	Office supplies		2581
Dec 31	Unearned revenue (10000/5)	2000
	Service revenue		2000
Dec 31	Rent expense	3740
	Prepaid rent		3740
Dec 31	Wages expense	5000
	Wages payable		5000