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Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on...

Wages of $8,000 are earned by workers but not paid as of December 31.
Depreciation on the company’s equipment for the year is $10,840.
The Office Supplies account had a $350 debit balance at the beginning of the year. During the year, $4,791 of office supplies are purchased. A physical count of supplies at December 31 shows $529 of supplies available.
The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,400 of unexpired insurance benefits remain at December 31.
The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.

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Answer:

Wages of $8,000 are earned by workers but not paid as of December 31.

December 31, 202x, adjusting entry for wages expense

Dr Wages expense 8,000

Cr Wages payable 8,000

Depreciation on the company’s equipment for the year is $10,840.

December 31, 202x, adjusting entry depreciation expense

Dr Depreciation expense 10,840

Cr Accumulated depreciation: equipment 10,840

The Office Supplies account had a $350 debit balance at the beginning of the year. During the year, $4,791 of office supplies are purchased. A physical count of supplies at December 31 shows $529 of supplies available.

December 31, 202x, adjusting entry for supplies expense

Dr Supplies expense 4,612

Cr Supplies 4,612

The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,400 of unexpired insurance benefits remain at December 31.

December 31, 202x, adjusting entry for insurance expense

Dr insurance expense 2,600

Cr Prepaid insurance 2,600

The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.

December 31, 202x, adjusting entry for interest revenue

Dr Interest receivable 650

Dr Interest revenue 650

The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

December 31, 202x, adjusting entry for interest expenses

Dr Interest expense 4,000

Cr Interest payable 4,000

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