Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31 2020, the following information was available

image text in transcribed
Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31 2020, the following information was available for the preparation of the January 31, 2020, month-end adjusting entries: a. Equipment purchased on November 1 of this accounting period for $23.760 is estimated to have a useful life of 3 years. After 3 years of use, it is expected that the equipment will be scrapped due to technological obsolescence b. Of the $12.000 balance in Unearned Consulting Revenue, $9,300 had been earned. C. The Prepaid Rent account showed a balance of $15,300. This was paid on January 1 of this accounting period and represents SX months of rent commencing on the same date. d. Accrued wages at January 31 totalled $19,100. e. One month of interest had accrued at the rate of 3% per year on a $54,000 note payable. f. Unrecorded and uncollected consulting revenues at month-end were $6.450. g. A $4,050 insurance policy was purchased on April 1 of the current accounting period and debited to the Prepaid Insurance account Coverage began April 1 for 18 months. h. The monthly depreciation on the office furniture was $655 I. Repair revenues accrued at month-end totalled $4.000. J. The Store Supplies account had a balance of $860 at the beginning of January. During January $1840 of supplies were purchased and debited to the Store Supplies account. At month-end, a count of the supplies revealed a balance of $710. Assume Wedona Energy uses the straight-line method to depreciate its assets. Required: Prepare adjusting journal entries for the month ended January 31, 2020, based on the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Finesse An Accounting Guide For Entrepreneurs

Authors: TaShara Ramese

1st Edition

1732510903, 978-1732510906

More Books

Students also viewed these Accounting questions

Question

2. What is the business value of security and control?

Answered: 1 week ago