Record transactions and adjustments
Show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration. a. Provided services to a client on account; revenues totaled $570. b. Paid an insurance premium of $480 for the coming year. An asset, Prepaid Insurance, was debited. c. Recognized insurance expense for one month from the premium transaction in b via a reclassification adjusting entry. d. Paid $850 of wages accrued at the end of the prior month. e. Paid $2,550 of wages for the current month. f. Accrued $575 of wages at the end of the current month. g. Received cash of $1,525 on accounts receivable accrued at the end of the prior month. Required: a. Indicate the financial statement effect. b. Prepare the journal entry for the above transactions. Complete this question by entering your answers in the tabs below. Indicate the financial statement effect. Prepare the journal entry for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the $570 services provided to a client on account. 2 Record the $480 insurance premium paid for the coming year. 3 Record the recognized insurance expense for one month via a reclassification adjusting entry. 4 Record the payment of $850 wages accrued at the end of the prior month. 5 Record the $2,550 wages paid for the current month. Journal entry worksheet Record the $480 insurance premium paid for the coming year. Note: Enter debits before credits. Journal entry worksheet Record the $480 insurance premium paid for the coming year. Note: Enter debits before credits. Journal entry worksheet Record the recognized insurance expense for one month via a reclassification adjusting entry. Note: Enter debits before credits. Journal entry worksheet Record the payment of $850 wages accrued at the end of the prior month. Note: Enter debits before credits. Journal entry worksheet Record the $2,550 wages paid for the current month. Note: Enter debits before credits. Journal entry worksheet Record the $2,550 wages paid for the current month. Note: Enter debits before credits. Record the $575 of wages accrued at the end of the current month. Note: Enter debits before credits. Record the cash receipt of $1,525 accounts receivable accrued at the end of the prior month. Note: Enter debits before credits
