adjusting entries\ncompleted for the month of september on 9/30\n1. $5,000 of depreciation has accumulated…

adjusting entries\ncompleted for the month of september on 9/30\n1. $5,000 of depreciation has accumulated on equipment for the month of september\n2. $4,000 in wages were incurred in the last week of sept., and will be paid on october 7th\n3. unearned rev. beginning balance on 9/1 showed 10,000. on 9/30 it shows 3,500\n4. supplies account balance showed 7,500 on 9/1. supplies account balance now shows 4,500 as of 9/30\n5. we used one - month of our 12,000 yearly subscription to a marketing logistics program\n6. while reviewing transactions we see $4,000 worth of services were performed on account and will be billed in october. this was never previously recorded because the accountant was sick that day.\naccount dr cr\n1. depreciation expense 5,000\naccumulated depreciation - equipment 5,000\n2. wages expense 4,000\nwages payable 4,000\n3. unearned revenue 6,500\nservice revenue 6,500\n4. supplies expense 3,000\nsupplies 3,000

adjusting entries\ncompleted for the month of september on 9/30\n1. $5,000 of depreciation has accumulated on equipment for the month of september\n2. $4,000 in wages were incurred in the last week of sept., and will be paid on october 7th\n3. unearned rev. beginning balance on 9/1 showed 10,000. on 9/30 it shows 3,500\n4. supplies account balance showed 7,500 on 9/1. supplies account balance now shows 4,500 as of 9/30\n5. we used one - month of our 12,000 yearly subscription to a marketing logistics program\n6. while reviewing transactions we see $4,000 worth of services were performed on account and will be billed in october. this was never previously recorded because the accountant was sick that day.\naccount dr cr\n1. depreciation expense 5,000\naccumulated depreciation - equipment 5,000\n2. wages expense 4,000\nwages payable 4,000\n3. unearned revenue 6,500\nservice revenue 6,500\n4. supplies expense 3,000\nsupplies 3,000

Answer

Explanation:

Step1: Record depreciation

Debit Depreciation Expense for $5,000 and credit Accumulated Depreciation - Equipment for $5,000 to record the month - end depreciation. $$\text{Debit: Depreciation Expense } 5000$$ $$\text{Credit: Accumulated Depreciation - Equipment } 5000$$

Step2: Record accrued wages

Debit Wages Expense for $4,000 and credit Wages Payable for $4,000 to record the wages incurred but not yet paid. $$\text{Debit: Wages Expense } 4000$$ $$\text{Credit: Wages Payable } 4000$$

Step3: Adjust unearned revenue

Debit Unearned Revenue for $6,500 ($10,000 - $3,500) and credit Service Revenue for $6,500 to recognize the revenue that has been earned. $$\text{Debit: Unearned Revenue } 6500$$ $$\text{Credit: Service Revenue } 6500$$

Step4: Record supplies used

Debit Supplies Expense for $3,000 ($7,500 - $4,500) and credit Supplies for $3,000 to account for the supplies that have been used. $$\text{Debit: Supplies Expense } 3000$$ $$\text{Credit: Supplies } 3000$$

Step5: Record subscription expense

Debit Subscription Expense for $1,000 ($12,000/12) and credit Pre - paid Subscription for $1,000 to recognize the expense for one month of the subscription. $$\text{Debit: Subscription Expense } 1000$$ $$\text{Credit: Pre - paid Subscription } 1000$$

Step6: Record unrecorded services

Debit Accounts Receivable for $4,000 and credit Service Revenue for $4,000 to record the services that have been performed but not previously recorded. $$\text{Debit: Accounts Receivable } 4000$$ $$\text{Credit: Service Revenue } 4000$$

Answer:

  1. Debit: Depreciation Expense $5,000; Credit: Accumulated Depreciation - Equipment $5,000
  2. Debit: Wages Expense $4,000; Credit: Wages Payable $4,000
  3. Debit: Unearned Revenue $6,500; Credit: Service Revenue $6,500
  4. Debit: Supplies Expense $3,000; Credit: Supplies $3,000
  5. Debit: Subscription Expense $1,000; Credit: Pre - paid Subscription $1,000
  6. Debit: Accounts Receivable $4,000; Credit: Service Revenue $4,000