4) Prepare adjusting entries for the following items on December 31, the end of the fiscal...

Transcribed Image Text:

4) Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Eddison Don Repairs. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets. a) Amortization on truck, $500 b) Services performed but unbilled, $3,000 c) Salaries owed to employees at year end, $2,500 d) Unearned service revenue earned, $5,500 e) Supplies used during the year, $200 f) Prepaid rent expired during the year, $4,500 g) Prepaid insurance now expired $400 Answer: 2 Page 4) Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Eddison Don Repairs. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets. a) Amortization on truck, $500 b) Services performed but unbilled, $3,000 c) Salaries owed to employees at year end, $2,500 d) Unearned service revenue earned, $5,500 e) Supplies used during the year, $200 f) Prepaid rent expired during the year, $4,500 g) Prepaid insurance now expired $400 Answer: 2 Page