8. received $3,550 from customers for goods previously purchased on account.\n9. monthly depreciation…

8. received $3,550 from customers for goods previously purchased on account.\n9. monthly depreciation expense on equipment is $650.\n10. paid dividends of $375.\n11. paid for a 2 - year insurance policy of $5,600.\n12. incurred rent expense of $900, paid for on account.\n4. adjusting entries\nprepare the following adjusting journal entries needed on december 31, 2022.\n1. a one - year insurance policy was purchased on september 30, 2022 for $6,000.\n2. there was $500 of supplies on hand on december 31, 2022, and the beginning balance in the supplies account was $1,700.\n3. $3,500 worth of services were performed on december 31, 2022 for customers who previously paid on december 1.\n4. depreciation on equipment for 2022 was $3,700.\n5. accrued wages at year - end were $875. they will be paid at the end of the next pay period, january 7, 2023.

8. received $3,550 from customers for goods previously purchased on account.\n9. monthly depreciation expense on equipment is $650.\n10. paid dividends of $375.\n11. paid for a 2 - year insurance policy of $5,600.\n12. incurred rent expense of $900, paid for on account.\n4. adjusting entries\nprepare the following adjusting journal entries needed on december 31, 2022.\n1. a one - year insurance policy was purchased on september 30, 2022 for $6,000.\n2. there was $500 of supplies on hand on december 31, 2022, and the beginning balance in the supplies account was $1,700.\n3. $3,500 worth of services were performed on december 31, 2022 for customers who previously paid on december 1.\n4. depreciation on equipment for 2022 was $3,700.\n5. accrued wages at year - end were $875. they will be paid at the end of the next pay period, january 7, 2023.

Answer

Explanation:

Step1: Insurance policy adjustment

The insurance policy was bought on September 30, 2022 for a year - long period costing $6000. For the year 2022, the expired portion is for 3 months (October - December). The monthly insurance expense is $\frac{6000}{12}=500$. So the insurance expense for 2022 is $500\times3 = 1500$. Debit: Insurance Expense $1500$ Credit: Pre - paid Insurance $1500$

Step2: Supplies adjustment

The beginning balance of supplies was $1700$ and the ending balance is $500$. So the supplies used is $1700 - 500=1200$. Debit: Supplies Expense $1200$ Credit: Supplies $1200$

Step3: Service revenue adjustment

Services worth $3500$ were performed in 2022 for customers who had paid in advance. Debit: Unearned Service Revenue $3500$ Credit: Service Revenue $3500$

Step4: Depreciation adjustment

The depreciation on equipment for 2022 is $3700$. Debit: Depreciation Expense - Equipment $3700$ Credit: Accumulated Depreciation - Equipment $3700$

Step5: Wages adjustment

Accrued wages at year - end of $875$ need to be recognized. Debit: Wages Expense $875$ Credit: Wages Payable $875$

Answer:

  1. Debit: Insurance Expense $1500$, Credit: Pre - paid Insurance $1500$
  2. Debit: Supplies Expense $1200$, Credit: Supplies $1200$
  3. Debit: Unearned Service Revenue $3500$, Credit: Service Revenue $3500$
  4. Debit: Depreciation Expense - Equipment $3700$, Credit: Accumulated Depreciation - Equipment $3700$
  5. Debit: Wages Expense $875$, Credit: Wages Payable $875$