Question

a. Depreciation on the company's equipment for the year is computed to be $11,000. b. The Prepaid Insurance account had a $5,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's Insurance policies showed that $1,800 of unexpired insurance coverage remains. c. The Office Supplies account had a $410 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 $484 of supplies available. d. Two-thirds of the work related to $12,000 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 $3,700 of prepaid rent had expired. £ Wage expenses of $2.000 have been incurred but are not paid as of December 31 Prepare adjusting journal entries for the year ended (date on December 31 for each of these separate situations. View transaction list Journal entry worksheet < 1 2 34 5 6 > Depreciation on the company's equipment for the year is computed to be $11,000 Note: Enter debits before credits Transaction General Journal Credit Debit lood Record entry Clear entry View general Journal

Answer 1

Transaction Credit Debit 11,000 a. General Journal Depreciation expense - Equipment Accumulated depreciation - Equipment (To record depreciation expense for the period) 11,000 Credit Transaction b. Debit 3,200 General Journal Insurance expense Prepaid insurance (To record expired insurance coverage ) 3,200

==> Expired insurance coverage = $5,000 - $1,800 = $3,200

Transaction Credit Debit 2,606 C. General Journal Office supplies expense Office supplies (To record office supplies used) 2,606

==> Office supplies expense = $410 + $2,680 - $484 = $2,606

General Journal Credit Transaction d. Debit 8,000 Unearned revenue 8,000 Revenue (To record earned portion of revenue received in advance)

==> Revenue = $12,000 x 2/3 = $8,000

Transaction Credit Debit 3,700 General Journal Rent expense Prepaid rent (To record expired prepaid rent) 3,700 Credit Transaction f. Debit 2,000 General Journal Wages expense Wages payable (To record employee wages earned but not yet paid) 2,000