P3-33

Lindy Landscaping has collected the following data for the December 31 adjusting entries: (Click the icon to view the independent cases.) Read the requirements Requirement 1. Journalize the adjusting entry needed on December 31 for each of the items affecting Lindy Landscaping. Assume Lindy records adjusting entries only at the end of the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Each Friday, Lindy pays employees for the current week's work. The amount of the weekly payroll is $6,500 for a five-day workweek. This year December 31 falls on a Thursday. Lindy will pay its employees on January 1. Date Accounts and Explanation Debit Credit Dec. 31 - X More info a. C. Each Friday, Lindy pays employees for the current week's work. The amount of the weekly payroll is $6,500 for a five-day workweek. This year December 31 falls on a Thursday. Lindy will pay its employees on January 1. b. On January 1 of the current year, Lindy purchases an insurance policy that covers two years, $10,000 The beginning balance of Office Supplies was $4,300. During the year, Lindy purchased office supplies for $5,700, and at December 31 the office supplies on hand total $1,400. d. During December, Lindy designed a landscape plan and the client prepaid $5,000. Lindy recorded this amount as Uneared Revenue. The job will take several months to complete, and Lindy estimates that the company has earned 60% of the total revenue during the current year. e. At December 31, Lindy had earned $4,000 for landscape services completed for Transit Appliances. Transit has stated that it will pay Lindy on January 10. f. Depreciation for the current year includes Equipment, $3,000; and Trucks, $1,600. g. Lindy has incurred $800 of interest expense on a $900 interest payment due on January 15. Print Done