E4-12 LO4-1, 4-4 A Recording Transactions Including Adjusting and Closing Entries (Nonquantitative) The following accounts are used by Britt's Knits, Inc.. Accounts Codes Accounts Codes ABC Cash J Common Stock and Additional Paid-in Capital Office Supplies K Retained Earnings C Accounts Receivable L Service Revenue D Office Equipment Interest Revenue E Accumulated Depreciation Wage Expense F Notes Payable Depreciation Expense G Wages Payable Interest Expense H Interest Payable Q Supplies Expense I Unearned Service Revenue R None of the above Source: Britt's Knits, Inc. Required: For each of the following nine independent situations, prepare the journal entry by entering the appropri- ate code(s) and amount(s). The first transaction is used as an example. fetc.) E4-12 LO4-1, 4-4 Recording Transactions Including Adjusting and Closing Entries (Nonquantitative) The following accounts are used by Britt's Knits, Inc. Accounts Codes Accounts Codes A Cash J B Office Supplies K Common Stock and Additional Paid-in Capital Retained Earnings C Accounts Receivable L Service Revenue D Office Equipment M Interest Revenue E Accumulated Depreciation N Wage Expense F Notes Payable 0 Depreciation Expense G Wages Payable P Interest Expense H Interest Payable Q Supplies Expense 1 Unearned Service Revenue R None of the above Source: Britt's Knits, Inc. Required: For each of the following nine independent situations, prepare the journal entry by entering the appropri ate code(s) and amount(s). The first transaction is used as an example. for the Year Expenses Depreciam Office su Insuranc Determining Financia Note 1: On April 1 of the tomer in settlement of a S interest are payable at the Note 2: On August I of 12 percent loan from of six months. Required: For the relevant tran direction of effects decrease, and NE fo Net Income; and N CHAPTER 4 Adjustments, Finance Statements and the Quality of Earnings DEBIT CREDIT Independent Situations Accrued wages, unrecorded and unpaid at year-end, $400 (example). A Service revenue earned but not yet collected at year-end, $600, Dividends declared and paid during the year, $900. Office supplies on hand during the year, $400; supplies on hand at year-end, $160. e Service revenue collected in advance and not yet earned, $800. f Depreciation expense for the year, $1.000. At year-end, interest on note payable not yet recorded or paid, $220. Balance at year-end in Service Revenue account, $56,000. Pre- pare the closing entry at year-end. Balance at year-end in Interest Expense account, $460. Prepare the closing entry at year-end. Code Amount Code Amount N 400 G 400 Determining Financial Statement Effects of Three Adjusting Entries of the current year. It is now December 31, the end of the current E4-13 LO4-1,4-2 211