Question

a. Wages of $8,000 are earned by workers but not paid as of December 31, b. Depreciation on the company's equipment for the year is $18,000. c. The Office Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of office supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available. d. The Prepaid Insurance account had a $4.000 balance at the beginning of the year. An analysis of insurance policies shows that $1.200 of unexpired Insurance benefits remain at December 31. e. The company has earned (but not recorded) $1,050 of Interest revenue for the year ended December 31. The Interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) Interest expense of $2,500 for the year ended December 31. The company will pay the Interest five days after the year-end on January 5. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31

Answer 1

Date	General Journal	Debit	Credit
a	Wages Expense	8000
	Wages Payable		8000
b	Depreciation Expense - Equipment	18000
	Accumulated Depreciation - Equipment		18000
c	Supplies Expense	5000		=240+5200-440
	Supplies		5000
d	Insurance Expense	2800		=4000-1200
	Prepaid Insurance		2800
e	Interest Receivable	1050
	Interest Revenue		1050
f	Interest Expense	2500
	Interest Payable		2500