6 7 8 9 10 16 20 Additional supplies costing $1,400 are purchased on account and received. $700 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,600. $7,400 of services are performed for customers who paid immediately in cash. $2,960 of salaries are paid for the first half of the month. FDI receives $3,700 cash from a customer for an advance order for services to be provided later in January and in February. $3,500 is collected from customers on account (see January 9 transaction). 25 January Additional information for adjusting entries: 31a. A $1,100 bill arrives for January utility services. Payment is due February 15. 31b. Supplies on hand on January 31 are counted and determined to have cost $280. 31c. As of January 31, FDI had completed 60% of the deliveries for the customer who paid in advance on January 20. 31d. Accrue one month of interest on the bank loan. Yearly interest is determined by multiplying the amount borrowed by the annual interest rate (expressed as 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 3le. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the van's benefits will be used up, which implies annual depreciation equal to one-fourth of the van's total cost. Record depreciation for the month of January, equal to one-twelfth of the annual depreciation expense. 318. Salaries earned by employees for the period from January 16-31 are $1,480 per employee and will be paid on February 3. 319. Adjust the prepaid asset accounts (for rent and insurance) as needed. 5 Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: Book a. The unadjusted balance in Supplies was $930 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $110 of supplies on hand. b. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $4500. The last paychecks were issued December 28, the next payments will be made on January 6, 2019. c. A portion of the store's basement is now being rented for $1,180 per month to K. Frey. On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $7,080. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018 d. The store purchased delivery equipment at the beginning of the year . The estimated depreciation for 2018 is $2,800, although none has been recorded yet. e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $3,480. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018 Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $830. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019, Print 6 7 8 9 10 16 20 Additional supplies costing $1,400 are purchased on account and received. $700 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,600. $7,400 of services are performed for customers who paid immediately in cash. $2,960 of salaries are paid for the first half of the month. FDI receives $3,700 cash from a customer for an advance order for services to be provided later in January and in February. $3,500 is collected from customers on account (see January 9 transaction). 25 January Additional information for adjusting entries: 31a. A $1,100 bill arrives for January utility services. Payment is due February 15. 31b. Supplies on hand on January 31 are counted and determined to have cost $280. 31c. As of January 31, FDI had completed 60% of the deliveries for the customer who paid in advance on January 20. 31d. Accrue one month of interest on the bank loan. Yearly interest is determined by multiplying the amount borrowed by the annual interest rate (expressed as 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 3le. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the van's benefits will be used up, which implies annual depreciation equal to one-fourth of the van's total cost. Record depreciation for the month of January, equal to one-twelfth of the annual depreciation expense. 318. Salaries earned by employees for the period from January 16-31 are $1,480 per employee and will be paid on February 3. 319. Adjust the prepaid asset accounts (for rent and insurance) as needed. 5 Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: Book a. The unadjusted balance in Supplies was $930 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $110 of supplies on hand. b. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $4500. The last paychecks were issued December 28, the next payments will be made on January 6, 2019. c. A portion of the store's basement is now being rented for $1,180 per month to K. Frey. On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $7,080. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018 d. The store purchased delivery equipment at the beginning of the year . The estimated depreciation for 2018 is $2,800, although none has been recorded yet. e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $3,480. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018 Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $830. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019, Print