Record adjustments. (LO 1, 2, 3)

The Delphi Desk Company has the following amounts in its records at the end of the fiscal year:

The company also has the following information available at the end of the year:
1. Of the prepaid insurance, \(\$ 1,000\) has now expired.
2. Of the unearned revenue, \(\$ 1,700\) has been earned.
3. The company must accrue an additional \(\$ 1,250\) of wages expense.
4. A bill for \(\$ 300\) from the company that provides the desks that Delphi Desk Company sells arrived on the last day of the year. Nothing related to this invoice has been recorded or paid.
5. The company has earned an additional \(\$ 500\) of interest revenue, not yet received.
\section*{Required}

a. Use an accounting equation worksheet to show the adjustments at the end of the year.

b. Calculate the balances in each account after the adjustments.

c. Indicate whether each adjustment is an accrual or deferral.

Transcribed Image Text:

Prepaid insurance Unearned revenue $5,000 3,700 Wages expense Accounts payable 6,790 4,200 Interest revenue 1.235