Question

Question 9 15 pts All of the transactions involving cash for the year have been journalized and posted. The following information has been gathered for the adjustment process as of December 31, 2020. Prepare the required adjusting journal entries required at December 31, 2020. 1. The unadjusted Supplies account shows a balance of $900. A count of supplies revealed $400 on hand. 2. The $1,200 premium relating to a one-year insurance policy was paid on November 30, 2020 3. The company's equipment, which was purchased last year, depreciates at a rate of $1,000 per year. 4. On September 30, 2020, a customer paid $10,000 in advance for services; as of December 31, 2020, services in the amount of $3,000 had been performed for this customer 5. Employees are paid $5,000 at the end of the day on Fridays for each 5-day work week (pro-rated if necessary). However, December 31, 2020, falls on a Thursday,

Answer 1

Answer

Adjusted Journal Entries
Transactions	Debit	Credit
Supplies Expense	500.00
To Supplies Account		500.00
(Being supplies consumed ) (900-400)
Insurance Expense	100.00
To Prepaid Insurance		100.00
(Being Insurance for the month of December is adjusted with prepaid insurance)
Depreciation Account	1,000.00
To Equipmen Account		1,000.00
(Being depreciation provided on equipment)
Cash Account	10,000.00
To Unearned Revenue Account		10,000.00
(Being advance received from customer)
Unearned Revenue Account	3,000.00
To Revenue Account		3,000.00
(Being revenue recognised for the service performed in the month of December)
Salary or wages Expense	5,000.00
To Salary or Wage Payable		5,000.00
(Being salary payable to employee )
Total	19,600.00	19,600.00