Lukas Films Corp

Adjusting Journal Entries

The unadjusted trial balance of Lukas Films Corporation includes the following account

balances at December $31,2015,$ its fiscal year$-$end. Assume all accounts have normal debit or

credit balances as applicable. Prepare all necessary adjusting entries at December $31,2015.$

A physical count of supplies indicates that $$100$ of supplies have not been used at December $31.$

A $$75$ telephone bill for December has been received but not recorded.

One day of wages amounting to $$125$ remains unpaid and unrecorded at December $31$; the

amount will be included with the first Friday payment in January.

The equipment was purchased December $1$; it is expected to last $2$ years. No depreciation has

yet been recorded.

The prepaid rent is for three months: December $2015,$ January $2016,$ and February $2016.$

Half of the unearned advertising has been earned at December $31.$

The $$900$ balance in Insurance Expense is for a one$-$year policy, effective August $1,2015.$