Question
Make adjusting journal entries for the year ended (date of) December 31,2017, for each of these separate situations. (Entries can draw from thefollowing partial chart
Make adjusting journal entries for the year ended (date of) December 31,2017, for each of these separate situations. (Entries can draw from thefollowing partial chart of accounts: Cash; Accounts Receivable; Supplies;Prepaid Insurance; Equipment; Accumulated DepreciationEquipment;Wages Payable; Unearned Revenue; Revenue; Wages Expense; SuppliesExpense; Insurance Expense; Depreciation ExpenseEquipment.)
a.Depreciation on the company's equipment for 2017 is computed to be$18,000.
b.The Prepaid Insurance account had a $6,000 debit balance atDecember 31, 2017, before adjusting for the costs of any expiredcoverage. An analysis of the company's insurance policies showedthat $1,100 of unexpired insurance coverage remains.
c.The Office Supplies account had a $700 debit balance on December31, 2016; and $3,480 of office supplies were purchased during theyear. The December 31, 2017, physical count showed $300 ofsupplies available.
d.Two-thirds of the work related to $15,000 of cash received in advancewas performed this period.
e.The Prepaid Insurance account had a $6,800 debit balance atDecember 31, 2017, before adjusting for the costs of any expiredcoverage. An analysis of insurancepolicies showed that $5,800 ofcoverage had expired.
f.Wage expenses of $3,200 have been incurred but are not paid as ofDecember 31, 2017.
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