prepare adjusting journal entries for the year ended december 31 for each separate situation.\na…

prepare adjusting journal entries for the year ended december 31 for each separate situation.\na. depreciation on the companys equipment for the year is computed to be $13,000.\nb. the prepaid insurance account had a $7,000 debit balance at december 31 before adjusting for the costs of any expired coverage. an analysis of the companys insurance policies showed that $630 of unexpired insurance coverage remains.\nc. the supplies account had a $590 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. the december 31 physical count showed $696 of supplies available.\nd. three - fourths of the work related to $13,000 of cash received in advance was performed this period.\ne. the prepaid rent account had a $5,800 debit balance at december 31 before adjusting for the costs of expired prepaid rent. an analysis of the rental agreement showed that $5,170 of prepaid rent had expired.\nf. wage expenses of $7,000 have been incurred but are not paid as of december 31.\nview transaction list\njournal entry worksheet\nnote: enter debits before credits.\ntransaction general journal debit credit

prepare adjusting journal entries for the year ended december 31 for each separate situation.\na. depreciation on the companys equipment for the year is computed to be $13,000.\nb. the prepaid insurance account had a $7,000 debit balance at december 31 before adjusting for the costs of any expired coverage. an analysis of the companys insurance policies showed that $630 of unexpired insurance coverage remains.\nc. the supplies account had a $590 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. the december 31 physical count showed $696 of supplies available.\nd. three - fourths of the work related to $13,000 of cash received in advance was performed this period.\ne. the prepaid rent account had a $5,800 debit balance at december 31 before adjusting for the costs of expired prepaid rent. an analysis of the rental agreement showed that $5,170 of prepaid rent had expired.\nf. wage expenses of $7,000 have been incurred but are not paid as of december 31.\nview transaction list\njournal entry worksheet\nnote: enter debits before credits.\ntransaction general journal debit credit

Answer

Explanation:

Step1: Record depreciation

Debit Depreciation Expense - Equipment to recognize the expense, and credit Accumulated Depreciation - Equipment to record the contra - asset.

Transaction General Journal Debit Credit
a Depreciation Expense - Equipment $13,000
Accumulated Depreciation - Equipment $13,000

Step2: Adjust prepaid insurance

The expired insurance is $7000 - 630=6370$. Debit Insurance Expense and credit Prepaid Insurance.

Transaction General Journal Debit Credit
b Insurance Expense $6,370
Prepaid Insurance $6,370

Step3: Adjust supplies

The supplies used is $590 + 2680-696 = 2574$. Debit Supplies Expense and credit Supplies.

Transaction General Journal Debit Credit
c Supplies Expense $2,574
Supplies $2,574

Step4: Recognize earned revenue from unearned revenue

Three - fourths of $13000 is $13000\times\frac{3}{4}=9750$. Debit Unearned Revenue and credit Service Revenue.

Transaction General Journal Debit Credit
d Unearned Revenue $9,750
Service Revenue $9,750

Step5: Adjust prepaid rent

Debit Rent Expense for the expired rent of $5,170 and credit Prepaid Rent.

Transaction General Journal Debit Credit
e Rent Expense $5,170
Prepaid Rent $5,170

Step6: Accrue wage expenses

Debit Wage Expense and credit Wages Payable for the $7,000 of unpaid wages.

Transaction General Journal Debit Credit
f Wage Expense $7,000
Wages Payable $7,000

Answer:

Transaction General Journal Debit Credit
a Depreciation Expense - Equipment $13,000
Accumulated Depreciation - Equipment $13,000
b Insurance Expense $6,370
Prepaid Insurance $6,370
c Supplies Expense $2,574
Supplies $2,574
d Unearned Revenue $9,750
Service Revenue $9,750
e Rent Expense $5,170
Prepaid Rent $5,170
f Wage Expense $7,000
Wages Payable $7,000