Question

the beginning balance in the Unearned Revenue T-account and the additional unearned revenue in the Service Revenue T-account. 3. Compare the ending balances of the T accounts under both approaches. Are they the same? > Problems Group A P3-33A Journalizing adjusting entries and subsequent journal entries Learning Object Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3. b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000.

Answer 1

1)

Date	Particulars	Debit	Credit
Dec-31	Salaries Expense	3,200
	Salaries Payable		3,200
Dec-31	Interest Expense	4,000
	Prepaid Insurance (8000/2 years)		4,000
Dec-31	Supplies Expense	8,400
	Office Supplies		8,400
	(3500+4900-2000)
Dec-31	Unearned Revenue	2600
	Service Revenue		2600
	(6500*40%)
Dec-31	Accounts Receivable	3,000
	Service Revenue		3,000
Dec-31	Depreciation Expense—Equipment	3,000
	Depreciation Expense—Truck	2,200
	Accumulated Depreciation—Equipment		3,000
	Accumulated Depreciation—Truck		2,200
Dec-31	Interest Expense	250
	Interest Payable		250

2)

'

Particulars	Debit	Credit
Salaries Expense	4,800
Salaries Payable	3,200
Cash		8,000
Unearned Revenue	2,000
Service Revenue		2,000
Interest Expense	300
Interest Payable	250
Cash		550