Question

Requirement 1. Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following independent cases affecting Jackson Corporation. Include an explanation for each entry. 1 Cases a. De is stil th a. The details of Prepaid Insurance are as follows: Prepaid Insurance Jan 1 Bal 2,600 Mar 31 3,000 Jackson prepays insurance on March 31 each year. At December 31, $800 is still prepaid. b. Jackson pays employees each Friday. The amount of the weekly payroll is $6,400 for a five-day work week. The current accounting period ends on Wednesday. c. Jackson has a note receivable. During the current year, Jackson has earned accrued interest revenue of $700 that it will collect next year b. Ja CC d. The beginning balance of supplies was $2,900. During the year, Jackson purchased supplies costing $6,300, and at December 31 supplies on hand total $2,200. e. Jackson is providing services for Sea Lion Investments, and the owner of Sea Lion paid Jackson an annual service fee of $10,900. Jackson recorded this amount as Unearned Service Revenue. Jackson estimates that it has earned 60% of the total fee during the current year. f. Depreciation for the current year includes Office Furniture, $4,000, and Equipment, $6,000. Print Done

Answer 1

Jackson Corporation Debit Credit Calculation Date Account Insurance expense 4,800 -2,600+3,000-800 a Prepaid Insurance 4,800 Salaries & wages expenses 3,840 -6,400/5*3 b Salaries &wages Payable 3,840 Interest Income Receivable 700 Interest Income 700 Supplies expense 7,000 -2,900+6,300-2,200 Supplies 7,000 -10,900*60 % Unearned Service Revenue 6,540 Service Revenue 6,540 f Depreciation expense 10,000 Accumulated Depreciation Office Furniture 4,000 Accumulated Depreciation Equipment 6,000