Question

Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also assume that fees collected in advance of work are initially recorded as liabilities: a. Depreciation on the company's equipment for 2011 is computed to be $16,000 b. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2011, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,040 of unexpired insurance coverage remains c. The Office Supplies account had a $300 debit balance on December 31, 2010; and $2,680 of office supplies were purchased during the year. The December 31, 2011, physical count showed $354 of supplies available d. One-half of the work related to $10,000 of cash received in advance was performed this period e. The Prepaid Insurance account had a $5,600 debit balance at December 31, 2011, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,600 of coverage had expired f. Wage expenses of $4,000 have been incurred but are not paid as of December 31, 2011

Answer 1

The answer of first question is given below:

Journal Entries
Sr No.	Particulars	Debit $	Credit $
a.	Depreciation A/C -Dr	16000
	To Equipment A/C		16000
	(Being deprecation charged on equipment)
b.	Insurance Expense A/C - Dr	5960
	To Prepaid Insurance		5960
	(Being expired portion of prepaid insurance booked to expenses = 7000-1040)
c.	Office Supplies A/C -Dr	2680
	To Cash		2680
	(Being office supplies purchased during the year)
	Supplies Expense A/C -Dr	2626
	To Office Supplies		2626
	(Being supplies consumed during the year = 300+2680-354)
d.	Deferred Revenue (Advance fee) A/C - Dr	5000
	To Sales A/C		5000
	(Being work completed for half of advance fees)
e.	Insurance Expense A/C - Dr	4600
	To Prepaid Insurance		4600
	(Being expired portion of prepaid insurance booked to expenses = 4600 given)
f.	Wages (Expense) A/C -Dr	4000
	To Wages Payable		4000
	(Being wages expenses for current year booked)

Assumed that there are two different insurance in prepaid insurance.

Note:

Chegg guidelines prohibits experts to answer multiple questions in single Q&A, so the other question cannot be answered. Please ask that question separately to get the answer.