Exercise 3-3 (Algo) prepar adjusting entries LO P1, P2, P3

1. Depreciation on the company's equipment for the year is computed to be $13,000.
2. The Prepaid Insurance account had a $8,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $520 of unexpired insurance coverage remains.
3. The Supplies account had a $250 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $295 of supplies available.
4. Three-fourths of the work related to $13,000 of cash received in advance was performed this period.
5. The Prepaid Rent account had a $5,200 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,680 of prepaid rent had expired.
6. Wage expenses of $1,000 have been incurred but are not paid as of December 31.

Prepar adjusting journal entries for the year ended December 31 for each separate situation.

• Depreciation on the company's equipment for the year is computed to be $13,000.

Transaction General Journal Debit Credit

a)

• The Prepaid Insurance account had a $8,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $520 of unexpired insurance coverage remains.

Note: Enter debits before credits.

Transaction General Journal Debit Credit

b)

The Supplies account had a $250 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $295 of supplies available.

Note: Enter debits before credits.

Transaction General Journal Debit Credit

c)

Three-fourths of the work related to $13,000 of cash received in advance was performed this period.

Transaction General Journal Debit Credit

d)

The Prepaid Rent account had a $5,200 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,680 of prepaid rent had expired.

Transaction General Journal Debit Credit

e)

Wage expenses of $1,000 have been incurred but are not paid as of December 31.

Transaction General Journal Debit Credit

f)

Use the following information for Exercises 17-18 below. (Algo)

[The following information applies to the questions displayed below.]

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account TitleDebitCreditCash$5,100Accounts receivable16,500Office supplies2,000Trucks177,000Accumulated depreciationTrucks$36,462Land75,000Accounts payable9,100Interest payable3,000Long-term notes payable52,000Common stock33,039Retained earnings139,000Dividends19,000Trucking revenue131,500Depreciation expenseTrucks23,518Salaries expense61,674Office supplies expense13,000Repairs expenseTrucks11,309Totals$404,101$404,101

Exercise 3-17 (Algo) Preparing financial statements from an adjusted trial balance LO P5

The Retained Earnings account balance was $139,000 at December 31 of theprior year.

(1)Prepare the income statementfor the year ended December 31.

(2)Prepare the statement of retained earnings for the year ended December 31.

Revenue

Expensed

Total expenses

Retained earningd, december 31 prior year

Retained earnings, december 31 current year

Required information

Use the following information for Exercises 17-18 below. (Algo)

[The following information applies to the questions displayed below.]

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account TitleDebitCreditCash$5,100Accounts receivable16,500Office supplies2,000Trucks177,000Accumulated depreciationTrucks$36,462Land75,000Accounts payable9,100Interest payable3,000Long-term notes payable52,000Common stock33,039Retained earnings139,000Dividends19,000Trucking revenue131,500Depreciation expenseTrucks23,518Salaries expense61,674Office supplies expense13,000Repairs expenseTrucks11,309Totals$404,101$404,101

Exercise 3-18 (Algo) Preparing a classified balance sheet LO C2

Use the above adjusted trial balance to prepare Wilson Trucking Company'sclassifiedbalance sheet as of December 31. The Retained Earnings account balance was $139,000 at December 31 of theprior year.

Wilson trucking company

balance sheet

december 31

Assets

Liabilities

Equity