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A B C D E F G H I J K L M Award: 20.00 points Problems? Adjust credit for all students. AWNH Wedona Energy

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A B C D E F G H I J K L M Award: 20.00 points Problems? Adjust credit for all students. AWNH Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31, 2020, the following information was available for the preparation of the January 31, 2020, month-end adjusting entries: a. Equipment purchased on November 1 of this accounting period for $18,720 is estimated to have a useful life of 3 years. After 3 years of use, it is 9 expected that the equipment will be scrapped due to technological obsolescence. 10 b. Of the $10,600 balance in Unearned Consulting Revenue, $7,900 had been earned. c. The Prepaid Rent account showed a balance of $11,100. This was paid on January 1 of this accounting period and represents six months of 11 rent commencing on the same date. 12 d. Accrued wages at January 31 totalled $17,700. 13 e. One month of interest had accrued at the rate of 6% per year on a $26,000 note payable. f. Unrecorded and uncollected consulting revenues at month-end were $5,750. 14 g. A $2,790 insurance policy was purchased on April 1 of the current accounting period and debited to the Prepaid Insurance account. Coverage 15 began April 1 for 18 months. 16 h. The monthly depreciation on the office furniture was $585. 1. Repair revenues accrued at month-end totalled $2,600. 17 J. The Store Supplies account had a balance of $720 at the beginning of January. During January, $1,700 of supplies were purchased and debited 18 to the Store Supplies account. At month-end, a count of the supplies revealed a balance of $570. 19 20 Assume Wedona Energy uses the straight-line method to depreciate its assets. 21 Required: 22 Prepare adjusting journal entries for the month ended January 31, 2020, based on the above. 23 24 25 ATE ADJUSTING ENTRIES 26 27 28

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