The unadjusted trial balance and adjustment data of Mylas Motors at December 31, 2024, follow. Adjustment data
Question:
The unadjusted trial balance and adjustment data of Myla’s Motors at December 31, 2024, follow.
Adjustment data at December 31, 2024:
a. Depreciation on equipment, $1,700.
b. Accrued Wages Expense, $1,300.
c. Office Supplies on hand, $400.
d. Prepaid Insurance expired during December $250.
e. Unearned Revenue earned during December, $4,200.
f. Accrued Service Revenue, $1,000. 2025 transactions:
a. On January 4, Myla’s Motors paid wages of $1,900. Of this, $1,300 related to the accrued wages recorded on December 31.
b. On January 10, Myla’s Motors received $1,700 for Service Revenue. Of this, $1,000 related to the accrued Service Revenue recorded on December 31.
Requirements
1. Journalize adjusting entries.
2. Journalize reversing entries for the appropriate adjusting entries.
3. Refer to the 2025 data. Journalize the cash payment and the cash receipt that occurred in 2025.
Step by Step Answer:
Horngrens Accounting The Financial Chapters
ISBN: 9780136162186
13th Edition
Authors: Tracie Miller Nobles, Brenda Mattison