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Required information Skip to question [The following information applies to the questions displayed below.] Wages of $10,000 are earned by workers but not paid as
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[The following information applies to the questions displayed below.]
- Wages of $10,000 are earned by workers but not paid as of December 31.
- Depreciation on the companys equipment for the year is $10,360.
- The Supplies account had a $380 debit balance at the beginning of the year. During the year, $4,666 of supplies are purchased. A physical count of supplies at December 31 shows $517 of supplies available.
- The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,000 of unexpired insurance benefits remain at December 31.
- The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
- The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equationspecifically, identify the accounts and amounts (including (+) increase or () decrease) for each transaction or event.
For each of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including (+) increase or (-) decrease) for each transaction or event. Assets Equity Liabilities (-) decrease a. Wages expense 1,000 + b. = + c. = + d. = + e. = + fStep by Step Solution
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