Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] a. Wages of $14,000 are earned by workers but not paid as of December
Required information [The following information applies to the questions displayed below.] a. Wages of $14,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $10,240, c. The Supplies account had a $370 debit balance at the beginning of the year. During the year, $4,927 of supplies are purchased. A physical count of supplies at December 31 shows $543 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,000 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $3,000 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 equation- specifically, identify the accounts and amounts (including (+) increase or (-) decrease) for each transaction or event. a. Cash b. Prepaid insurance c. Supplies Assets Liabilities Unearned revenue Wages payable ers 1-3 s $10.240. eginning of the year. During the year, $4,927 at December 31 shows $543 of supplies t the beginning of the year. An analysis of ance benefits remain at December 31. erest revenue for the year ended December he year-end on January 10. recorded) interest expense of $3,000 for the rest five days after the year-end on January 5. Saved Help Save & Exit Submit try by showing its effects on the accounting equation- ase or (-) decrease) for each transaction or event. = Unearned revenue Wages payable 30 == Liabilities Equity Interest revenue + + Supplies + Supplies expense + Unearned revenue Wages expense Wages payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started