Question

E3-4 Yilmaz vilmaz A.Ş. encounters the following situations: Identi moz collects t1,750 from a customer in 2017 for services to be performed in 20 adjus vilmaz incurs utility expense which is not yet paid in cash or recorded. (LO Vilmaz employees worked 3 days in 2017 but will not be paid until 2018. u Yilmaz performs services for a customer but has not yet received cash or recorded the transaction. 5 Yilmaz paid +2,400 rent on December 1 for the 4 months starting December 1. 6. Yilmaz received cash for future services and recorded a liability until the service was performed. 7. Yilmaz performed consulting services for a client in December 2017. On December 31, it had not billed the client +1,200 for these services. 8. Yilmaz paid cash for an expense and recorded an asset until the item was used up. 9. Yilmaz purchased +750 of supplies in 2017; at year-end, +400 of supplies remain unused. 10. Yilmaz purchased equipment on January 1, 2017; the equipment will be used for 5 years. 11. Yilmaz borrowed +10,000 on October 1, 2017, signing an 8%, 1-year note payable. Instructions Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, " accrued revenue) is needed in each situation at December 31, 2017, u ing balances in selected accounts on December 31, 2017.

can you answer it with an explanations, please!

Answer 1

Answer is below:-
Page 1 Answers Enteries on 31, December 2017 1. Bonk ala Dr. t 17.50 - To Debtor all t 1750 the → Explanation :- Since the Yilmaz has received pt payment but services are yet to be Performed. This is Unearned enevenue. utility expense To ale Dr creditor XXX afc XXX Explanation This is a comed expense because it has been incurred but some is not paid. 3. Salamy ale Dr. XXY To Employee (nome) XXX Explanation This is Accomed Expenses because employee has worked in 2017 but will be paid in 2018.

Customer al Dorn xxx Accurd Sleek a 4. x - This is comble d Benvies has been cash has not been umud Jaew provided by paid by because customer Rent Prepaid al Dr. Rent (Expose) To Bonk 600 1800 2400 This is prepaid sunt. Because eunt is paid for 4 months starching from December to manh. Bo only I manth Sunt is booked and balance is O accounted as prepaid Calculation of rust expense ayoox 1 = 600

Dr hearned xxx revenue xxx a To Rain 6. This is unearmed revenue because cash has been receued by Silmar but suvre are not provided 2wl be accome a wonon Sw a Aurrende 200 7. Debtor / Clint afc Dr. et 1200 To feed Race This is accrued - Provided by beled to revenue Yilmaz client because Services has been to client but has not in Del 2017 Perpaid Expence) Deo xxr Asset ok 8. The word en onse betawil ons will be long time and en werded as expense are used by Yilma use for

Page 4 9. Expense al Dr. 3.50 Pufail Expense afc Dr 400 To Bank / cash 750.- This is prepaid expense Som has not been to the extent of tumo because used tire Du 2017 10. Equipment al D xxx - To Bank xxx Bering equipment Purchased) Deprecationale - To Equipment xxx (Beng deformation changed on equipment in equal cont in 5 years) This is recorded as asset initially and will be defecated over 5 years. This is like Prepaid expense because it will use for 5 years.

V Page 5 21. On ort 1 2017 (a) Bonk ale Dre t 10,000 To Ate Payable to ru ng I year 8% note Borrowed) po) On 31 Dec 2017 Cfro accused expense) Interest al Dela 200 T 1000ox 9 x 32 ] To note payable 200 (Being internat booked for 3 months @ 8%) - This is after ou peu awewed expense because note is payable 1 year but 3 month interest is booked aw al concepte