E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements L04-1, 4-2 {The following information applies to the questions displayed below.) A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1 of the current year Purchases of shipping supplies during the current year Shipping supplies on hand, counted on December 31 of the current year $ 17,000 64.500 10.500 References Section Break E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2 1. Award: 10.00 points E4-5 Part 1 Required: 1. Record the adjusting entry for insurance at December 31 of the current year. (Do not the first account field.) und intermediate calculations. If no entry required for a transaction/event, select "No journal entry required" View transaction list Journal entry worksheet 1. Award: 10.00 points E4-5 Part 1 Required: 1. Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the adjusting journal entry for insurance premium of $4,800 on December 31 of the current year. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal 2. Award: 10.00 points E4-5 Part 2 2. Record the adjusting entry for supplies at December 31 of the current year, assuming that the shipping supplies purchased during the current year were debited in full to the account Shipping Supplies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting journal entry related to Shipping Supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal E4-5 Part 3 3. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense? (Do not round intermediate calculations.) Insurance expense Shipping supplies expense E4-5 Part 4 4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round intermediate calculations.) Prepaid insurance Shipping supplies
