Preparing and Journalizing Adjusting Entries For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form. 1. Unrecorded depreciation on equipment is $9,760. 2. On the date for preparing financial statements, an estimated utilities expense of $6,240 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded as a $44,800 debit to Prepaid Rent and a $44,800 credit to Cash. 4. Nine months ago, the Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $9,984 and crediting Contract Liabilities for $9,984. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared. 5. At the end of the period, employee wages of $15,440 have been incurred but not yet paid or recorded. 6. At the end of the period, $4,800 of interest income has been earned but not yet received or recorded. (a) using the financial statement effects template (b) in journal entry form Financial statements effects template Journal entries Income Statement Balance Sheet Contra Asset Liabilities 0 = 0 Noncash Asset 0 Earned Capital + Contrib. Capital 0 + Cash Asset + 0 + + Revenues 0 Expenses = Net Income 0 = 0 0 0 + 0 0 = 0 + 0 + 0 0 - 0 = 0 Transaction (1) Adjusting entry for depreciation: equipment (2) Adjusting entry for utilities expense (3) Adjusting entry for rent expense (4) Adjusting entry for premium revenues (5) Adjusting entry for wage expense (6) Adjusting entry for interest earned 0 + 0- 0 = 0 + 0 + 0 0 - 0 = 0 0 + 0 0 = 0 + 0 + 0 0 0 = 0 0 + 0 0 0 + 0 + 0 0 0 = 0 0 + 0 0 0 + 0 + 0 0 - 0 = 0 Preparing and Journalizing Adjusting Entries For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form. 1. Unrecorded depreciation on equipment is $9,760. 2. On the date for preparing financial statements, an estimated utilities expense of $6,240 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded as a $44,800 debit to Prepaid Rent and a $44,800 credit to Cash. 4. Nine months ago, the Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $9,984 and crediting Contract Liabilities for $9,984. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared 5. At the end of the period, employee wages of $15,440 have been incurred but not yet paid or recorded. 6. At the end of the period, $4,800 of interest income has been earned but not yet received or recorded. (a) using the financial statement effects template (b) in journal entry form Financial statements effects template Journal entries General Journal Description Debit Credit (1) 0 0 0 0 To record depreciation for the period. (2) 0 0 0 0 To record accrued utilities expense. (3) 0 0 > 0 0 To record rent expense for the month. (4) 0 0 0 0 To record premium revenue earned. (5) 0 0 0 0 To record accrued wages at the end of the period. (6) 0 0 0 0 To accrue interest earned but not yet received
