The following accounts are used by Britt's Knits Inc. Code Accounts Cash B office supplies c Accounts receivable D office equipment E Accumulated depreciation F Noto payable G Wages payable H Interest payable I Deferred service revenue Code Accounts Contributed capital K Retained earnings Service revenue M Interest revenue N Wage expense 0 Depreciation expense P Interest expense Supplies expense R None of the above Required: For each of the following nine independent situations, glve the journal entry by selecting the appropriate code(s) from the drop-down menu and enter the amounts) The first transaction is used as an example. Code N Debit Amount 1,350 Code G Credit Amount 1,350 Independent Situations a Accrued wages, un recorded and unpaid at year-end, $1,350 Service revenue earned but not yet collected at year-end, $1,550. c. Dividends declared and paid during the year, 51,850. domice supplies on hand during the year, 51,350, supplies on hand at year-end, $350. Service revenue collected in advance and not yet earned, $1,750 Depreciation expense for the year, $2,900 At year-end, interest on note payable not yet recorded or paid $410 h Balance at year-end in Service Revenue account, $75,000 Give the closing entry at year-end. Balance at year-end in Interest Expense account, $650. Give the closing entry at year-end. E4-10 Determining Financial Statement Effects of Interest on Two Notes L04-1 Note 1: On April 1 of the current year, Warren Corporation received a $32,000, 5 percent note from a customer in settlement of a $32,000 open account recevable. According to the terms, the principal of the note and interest are payable at the end of 12 months Warren's fiscal year ends on December 31 Note 2: On August 1 of the current year to meet a cash shortage, Warren Corporation obtained a $32,000, 6 percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months Required: For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the statement of financial position and the statement of earnings (Reminder: Assets Liabilities + Shareholders' equity, Revenues - Expenses - Net earnings, and net earnings accounts are closed to retained earings, a component of shareholders' equity) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) Statement of Financial Position Assets Liabilities Shareholders Equity Statement of Earnings Revenues Expenses Net Earnings Date Note 1: April 1(current year December 31 (current year) March 31 (next year) Note 2: August 1 (current year) December 31 (current year) January 31 (next year) 8 Cayuga Ltd prepared the following trial balance at the end of its first year of operations ended December 31. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31 are as follows: unadjusted Account Titles Debit Credit Cash $40 Accounts receivable 11 Prepaid insurance Machinery (20-year life, no residual value) 120 Accumulated depreciation $ 12 Accounts payable 11 Wages payable Income taxes payable Contributed capital (0,000 shares) 102 Retained earnings (deficit) Revenues not detailed) 94 Expenses (not detailed) 34 Totals $219 $219 a Insurance expired during the year. $6. b. Depreciation expense for the year. $6. cWages payable, $10. d Income tax expense, $11. Required: 1. Prepare the adjusting entries for the year. (Enter your answers in thousands of dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet