? E$4-8($Algo$)$ ?Recording Seven Typical Adjusting Entries LO$4-1$

Trotman's Variety Store is completing the accounting process for the current year just ended, December $31.$ ?The transactions during

the year have been journalized and posted. The following data with respect to adjusting entries are available:

a$.$ ?Wages earned by employees during December, unpaid and unrecorded at December $31,$ ?amounted to $$3,200.$ ?The last payroll

was December $28$ ?; the next payroll will be January $6.$

b$.$ ?Office supplies on hand at January $1$ ?of the current year totaled $$470.$ ?Office supplies purchased and debited to Office Supplies

during the year amounted to $$700.$ ?The year$-$end count showed $$245$ ?of supplies on hand.

c$.$ ?One$-$fourth of the basement space is rented to Kathy's Specialty Shop for $$530$ ?per month, payable monthly. At the end of the

current year, the rent for November and December had not been collected or recorded. Collection is expected in January of the

next year.

d$.$ ?The store used delivery equipment all year that cost $$70,500$;$$12,600$ ?was the estimated annual depreciation.

e$.$ ?On July $1$ ?of the current year, a two$-$year insurance premium amounting to $$3,600$ ?was paid in cash and debited in full to Prepaid

Insurance. Coverage began on July $1$ ?of the current year.

f$.$ ?The remaining basement of the store is rented for $$1,500$ ?per month to another merchant, M$.$ ?Carlos, Incorporated. Carlos sells

compatible, but not competitive, merchandise. On November $1$ ?of the current year, the store collected six months' rent in the

amount of $$9,000$ ?in advance from Carlos; it was credited in full to Unearned Rent Revenue when collected.

g$.$ ?Trotman's Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M$.$ ?Carlos. At the end of the

current year, Carlos had not paid $$750$ ?for completed repairs. This amount has not yet been recorded as Repair Shop Revenue.

Collection is expected during January of next year.

Prepare the adjusting entries that should be recorded for Trotman's Variety Store at December $31$ ?of the current year.

Note: If no entry is required for a transaction$/$event$,$ ?select $"$No journal entry required" in the first account field.Fill out the accounting chart: E$4-8($Algo$)$ ?Recording Seven Typical Adjusting Entries LO$4-1$

Trotman$’$s Variety Store is completing the accounting process for the current year just ended, December $31.$ ?The transactions during the year have been journalized and posted. The following data with respect to adjusting entries are available:

Wages earned by employees during December, unpaid and unrecorded at December $31,$ ?amounted to $$3,200.$ ?The last payroll was December $28$; the next payroll will be January $6.$

Office supplies on hand at January $1$ ?of the current year totaled $$470.$ ?Office supplies purchased and debited to Office Supplies during the year amounted to $$700.$ ?The year$-$end count showed $$245$ ?of supplies on hand.

One$-$fourth of the basement space is rented to Kathy's Specialty Shop for $$530$ ?per month, payable monthly. At the end of the current year, the rent for November and December had not been collected or recorded. Collection is expected in January of the next year.

The store used delivery equipment all year that cost $$70,500$; $$12,600$ ?was the estimated annual depreciation.

On July $1$ ?of the current year, a two$-$year insurance premium amounting to $$3,600$ ?was paid in cash and debited in full to Prepaid Insurance. Coverage began on July $1$ ?of the current year.

The remaining basement of the store is rented for $$1,500$ ?per month to another merchant, M$.$ ?Carlos, Incorporated. Carlos sells compatible, but not competitive, merchandise. On November $1$ ?of the current year, the store collected six months' rent in the amount of $$9,000$ ?in advance from Carlos; it was credited in full to Unearned Rent Revenue when collected.

Trotman$’$s Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M$.$ ?Carlos. At the end of the current year, Carlos had not paid $$750$ ?for completed repairs. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected during January of next year.Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

Wages earned by employees during December, unpaid and unrecorded at

December $31,$ ?amounted to $$3,200.$ ?The last payroll was December $28$ ?; the

next payroll will be January $6.$

Note: Enter debits before credits.