Question

Prepare the journal entries necessary to record the adjustments at year end. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries)

The folowing hfom OL, Inc. has the Solowing unadjusted account balances as of December 31,2018, the company's yearend l(Clck the icon to view the unadjusted balances) At year end, LOL makes adjusting joumal entries to properly record revenues and expenses. applies to the adjusting journal entries: (Cistk the lon the inlrmation fr he adbasting entrion.) Read the requrement The prepaid insurance baiance elates to an insurance policy purchased on January 1, 2018, that covers the period of January 1, 2018 to December 31, 2018 December 3 Information tor adjusting entries The prepaid insurance balance relahes to an insurance policy purchased on January 1, 2018, that covers the period of Jaruary 1, 2018 to December 31, 2018. Unadjated balances The prepaid rent balance relates to rent paid in June 2018 to oover the period of Judy 1, 2018 to June 30, 2019 Wages for 2018 in the amount of $23,000 will be paid aher year end and have not yelt been reoorded LOL purchased the equipment in the beginning of January 2018 and will depreciate it on a yearly basis No depreciation has been ecorded yet. The equpment has a useful ife of 15 years, no residual value, and wil be depreciated on a straight-Ine basits Cash: $600 000 "Anon% Rembe 50,500 Prepaid Insurance: $17,000 Prepaid Rent: $19.800 Equipment $52,500 . Accumulated Depreciation-Eqipment $0 Print Done Accounts Payable: $20.000 Common Stock $10.00 Sales Reve:$964,700 Wage Expense: $270,000 Utites Expense: $10,000 Rent Expensa: $9 900 DepreciationE $0 then click Check Answer

Answer 1