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c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday of each five-day
c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3. Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situ- Exercise 3-3 ations. (Entries can draw from the following partial chart of accounts: Cash: Accounts Receivable: Supplies; Preparing adjusting entries Prepaid Insurance: Equipment: Accumulated Depreciation-Equipment; Wages Payable; Unearned Revenue; P1 Revenue; Wages Expense: Supplies Expense: Insurance Expense; Depreciation Expense- Equipment.) a. Depreciation on the company's equipment for 2017 is computed to be $18,000. b. The Prepaid Insurance account had a $6,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coveragc. An analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. c. The Office Supplies account had a $700 debit balance on December 31, 2016; and $3,480 of office Check (c) Dr. Supplios supplies were purchased during the year. The December 31, 2017, physical count showed $300 of sup- Expense, $3,880 plies available d. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Insurance account had a $6,800 debit halance at December 31. 2017, before adjusting for the Expense, $5,800 (e) Dr. Insurance costs of any expired coverage. An analysis of insurance policies showed that $5.800 of coverage had expi f. Wage expenses of $3,200 have been incurred but are not paid as of December 31, 2017
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