Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $11,000, b.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $11,000, 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 $1,590 of unexpired insurance coverage remains. c. 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. d. One-fourth of the work related to $11,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,310 of prepaid rent had expired. f. Wage expenses of $7,000 have been incurred but are not paid as of December 31 . Prepare adjusting journal entries for the year ended December 31 for each separate situation. Journal entry worksheet 56 Depreciation on the company's equipment for the year is computed to be $11,000. Journal entry worksheet 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 $1,590 of unexpired insurance coverage remains. Note: Enter debits before credits. Journal entry worksheet 6 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. Journal entry worksheet 6 One-fourth of the work related to $11,000 of cash received in advance was performed this period. Note: Enter debits before credits. Journal entry worksheet The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,310 of prepaid rent had expired. Note: Enter debits before credits. Journal entry worksheet Wage expenses of $7,000 have been incurred but are not paid as of December 31. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Auditing And Assurance

Authors: James A. Hall, Tommie Singleton

2nd Edition

0324191987, 978-0324191981

More Books

Students also viewed these Accounting questions