Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] a. Wages of $13,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,680. c. The Supplies account had a $370 debit balance at the beginning of the year. During the year, $5,604 of supplies are purchased. A physical count of supplies at December 31 shows $610 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 $2,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $900 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 $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31. View transaction list Journal entry worksheet Wages of $13,000 are earned by workers but not paid as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Following are two income statements for Alexis Company for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. Income statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues $ 30,000 Services revenue Commissions revenue $ 24,000 42,500 42,500 Total revenues $ 66,500 72,500 Expenses 0 b. 1,500 Depreciation expense-Computers Depreciation expense-office furniture 1,750 salaries expense 12,500 d. 14,950 Insurance expense e. 1,300 Rent expense 4,500 4,500 0 office supplies expense Advertising expense 3,000 1,250 480 3,000 1,320 28,800 Utilities expense Total expenses 21, 250 Net income $ 45,250 $ 43,700 Analyze the statements and prepare the seven adjusting entries a. through g. that likely were recorded. Hint. The entry for a. refers to revenue that has been earned but not yet billed. No adjusting entry involves cash. View transaction list Journal entry worksheet