Chapter $3-$ Adjusting Accounts for Financial Statements

Prepare adjusting journal entries for the year ended $($date of$)$ December $31,$ for each of these separate situations. $($Assume that prepaid expenses are initially recorded in asset accounts. Also assume that fees collected in advance of work are initially recorded as liabilities$)$:

a$.$ Depreciation on the company's equipment for the current year is computed to be $$18,000.$

b$.$ The Prepaid Insurance account had a $$6,000$ debit balance at December $31$ before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $$1,100$ of unexpired insurance coverage remains.

c$.$ The Supplies account had a $$700$ debit balance at the beginning of December; and $$3,480$ of supplies were purchased December. The December $31$ physical count showed $$300$ of supplies available.

d$.$ Two$-$thirds of the work related to $$15,000$ of cash received in advance was performed this period.

e$.$ The Prepaid Rent account had a $$6,800$ debit balance at December $31,$ before adjusting for the costs of prepaid rent expired. An analysis of the rental agreement showed that $$5,800$ of prepaid rent had expired.

f$.$ Wage expenses of $$3,200$ have been incurred but are not paid as of December $31.$