Question D

IA4-4. Each of the following independent events occurred during the year ended December 31 for Clearwater, Inc. Instructions: Record the necessary adjusting journal entries at period-end. a. On December 30, $7,500 was billed to a client but is unrecorded. b. Office equipment of $47,000 is being depreciated over a 10-year useful life, with no residual value. $12,000 of new testing equipment was purchased on November 2. The equipment has an estimated 5-year useful life with $500 residual value. C. The company incurs $24,300 of weekly wage expense for a six-day week, Monday through Saturday. Wages d. The unadjusted balance of Prepaid Rent at year-end is $34,000. Each prepayment of $18,000 is made at nine-month intervals. The last payment was made on Analysis of completed jobs shows that the Unearned Revenue account should increase by $12,800 for the year. The company received $21,000 of advance payments during the year. are paid on the following Monday. December 31 year-end was a Thursday September 1. e. Reduction to the account is made only at year-end as an adjustment. f. On January 8, the company received a $350 telephone bill for December g. The beginning balance of the Supplies account is $4,600, which increased by $700 during the on December 31 shows a balance of $2,950 year. A count of supplies