Journalize the adjusting entry needed on December 31, 2020, the end of the current accounting period, for each of the following independent cases affecting Callaway Corp. Include an explanation for each entry.

a. Details of Prepaid Insurance are shown in the account:

Callaway prepays insurance on March 31 each year. At December \(31, \$ 900\) is still prepaid.

b. Callaway pays employees each Friday. The amount of the weekly payroll is \(\$ 6,000\) for a five-day work week. The current accounting period ends on Wednesday.

c. Callaway has a note receivable. During the current year, the company has earned accrued interest revenue of \(\$ 500\) that it will receive next year

d. The beginning balance of Supplies was \(\$ 2,600\). During the year, Callaway purchased supplies costing \(\$ 6,100\), and at December 31 the cost of supplies on hand is \(\$ 2,100\).

e. Callaway delivered goods to a customer on December 31, 2020. On January 2, it invoiced the customer \(\$ 5,000\) for these goods.

f. Depreciation for the current year includes Office Furniture, \(\$ 1,000\), and Equipment, \(\$ 2,700\). Make a compound entry.

Transcribed Image Text:

Prepaid Insurance 400 Jan 1 Mar. 31 Bal. 3,600