1 Emeril corporation encounters the following situations; instructions Identify what type of adjusting entry (Prepaid expense, unearned revenue, accrued expense,, accrued revenue)is needed in each situation at Decemeber 31, 2008 1. Emeril collects $1000 from a customer in 2008 for services to be performed in 2009. 2.Emeril incurs utility expense which is not yet paid in cash or recorded. 3.Emeril employees worked 3 days in 2008, but will not be paid utnil 2009. 4.Emeril earned service revenue but has not yet received cash or recorded the transaction 5. Emeril paid $2000 rent on December 1 for the 4 months starting December 1. 6. Emeril received cash for future services and recorded a liability until the revenue was earned 7.Emeril performed consulting services for a client in December 2008. On December 31, 2008, it billed the client $1200. 8.Emeril paid cash for an expense and recorded an asset until the item was used up. 9.Emeril purchased $900 of supplies in 2008; at year-end, $400 of supplies remain unused. 10.Emeril purchased equipment on January 1, 2008; the equipment will be used for 5 years. 11. Emeril borrowed $10,ooo on October 1, 2008 signing an 8% one year note payable. Question 2 Andy Wright, D.D.S. opened a dental practice on January 1, 2008. During the first month of operation the following transaction occured. 1.performed services for patients who had ental plan insurance. at January 31, $875 of such services was earned but not yet recorded.. 2.Utility expenses incurred but not paid prior to Janurary 31, 2008 total $520 3.purchased dental equipmenton January 1 for $80000 paying $20000 in cash and signing a $60,000, 3 years note payable.. The equipment depreciates $400 per month. interest $500 per month. 4. purchased a one-year malpractice insurance policy on january 1, for $12,000. 5. purchaed $1,600 of dental supplies. on january 31, determined that $400 of supplies were on hand. **instruction--prepare the adjusting entries on January 31 Date Account/description Debit Credit 1. Janu 31 2. Jan 31 3. janu 31 4. Jan 31 5. Jan 31 Questions 3 The income statement of Benning Co. for the month of July shows net income of $1,400 based on service revenue $5,500 wages expenes $2,300, supplies expense $1,200 and utilties expense $600. In reviewing the statement you discover the following 1. insurance expired during july of $400 was omitted 2.supplies expense ncudes $200 of supplies that are still on hand at july 31. 3.deprecitation on equipment of $150 was omitted 4. accrued but unpaid wages at July 31 of $300 were not included 5. service provided but unrecorded totaled $500 **instruction prepare a correct income statement for july 2008(list amounts from largest to smallest eg, 10,5,3,2 enter all amounts as positive amounts and subract where necesary Benning co. income statement revenues 1. $ expenses 1. $ 2. $ 3. $ 4. $ TOTAL EXPENSES $ NET INCOME $ 1