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Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the companys equipment for the year is $18,000. The
- Wages of $8,000 are earned by workers but not paid as of December 31.
- Depreciation on the companys equipment for the year is $18,000.
- The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available.
- The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31.
- The company has earned (but not recorded) $1,050 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 $2,500 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.
Required information Use the following information for the Exercises below. (Static) [The following information applies to the questions displayed below.] a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $18,000. c. The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available. d. The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $1,050 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 $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-10 (Static) Analyzing adjusting entries using accounting equation LO P1, P3, P4 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 Liabilities Equity a. b. + C. + d. e. f. = +Step by Step Solution
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