Carey Land Company, a closely held corporation, Invests in commercial rental properties. Carey's annual accounting period ends on December 31. At the end of each year, numerous adjusting entries must be made because many transactions completed during current and prior years have economic effects on the financial statements of the current and future years. Assume that the current year is 2021 Required: Transaction (): On January 1, 2019, the company purchased office equipment costing $14,000 for use in the business. The company estimates that the equipment's cost should be allocated at $1.000 annually 1. Over how many accounting periods will this transaction directly affect Carey's financial statements? 2. How much depreciation expense was reported on the 2019 and 2020 income statements? 4. Prepare the adjusting Journal entry Carey would make at the end of each year. Transaction (b): On September 1, 2021, Carey collected $30,000 rent on office space. This amount represented the monthly rent in advance for the six-month perlod September 1 2021, through February 28, 2022. Unearned Rent Revenue was increased (credited) ond Cash was increased (debited) for $30,000 1. Over how many accounting periods wil this transaction affect Carey's financial statements? 2. How much rent revenue on this office space should Carey report on the 2021 income statement? 3. Did this transaction create a liability for Carey as of the end of 2021? 4. Prepare the adjusting journal entry Carey would make on December 31, 2022 Transaction (ch: on December 31, 2021, Carey owed employees unpaid and unrecorded wages of $7,500 because the employees worked the last three days in December 2021. The next payroll dote is January 5, 2022 1. Over how many accounting periods will this transaction affect Carey's financial statements? 3. Prepare the adjusting journal entry Carey would make on December 31, 2021 Transaction (c): On January 1, 2021, Corey agreed to supervise the planning and subdivision of a large tract of land for a customer, J. Cirba. This service job that Carey will perform involves four separate phases. By December 31, 2021, three phases had been 1. Over how many accounting perlods will this transaction affect Carey's financial statements? 3. Prepare the adjusting Journal entry Carey would make on December 31, 2021 Transaction (): On January 1, 2021, Carey agreed to supervise the planning and subdivision of a large tract of land for a customer, J. Cirba, This service job that Carey will perform involves four separate phases. By December 31, 2021, three phases had been completed to Cirba's satisfaction. The remaining phase will be performed during 2022. The total price for the four phases (agreed on in advance by both parties) was $60,000. Each phase involves about the same amount of services On December 31, 2021. Carey had collected no cash for the services already performed. 1. Should Carey record any service revenue on this job for 2021? 2. Prepare the adjusting journal entry Carey would make on December 31, 2021 3. What entry will Carey make when it completes the last phase, assuming that the full contract price is collected on the completion date, February 15, 20227 Complete this question by entering your answers in the tabs below. Trans Al and ) Trans A4 Trans B1 and 2 Trans 3 Trans 34 Trans CI Tn | Trans Di Trans 2 Trans 03 1. Over how many accounting periods will this transaction directly affect Carey's financial statements? 2. How much depreciation expense was reported on the 2019 and 2020 income statements? Carey's financial statements Depreciation expense year each year Journal entry worksheet Record the adjusting entry each year over the life of the asset that would be recorded to reflect the allocation of the cost of the asset when used to generate revenues. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 1. Over how many accounting periods will this transaction affect Carey's financial statements? 2. How much rent revenue on this office space should Carey report on the 2021 Income statement? Carey's financial statements Rent revenue oamed years in 2021 Journal entry worksheet