The unadjusted trial balance of and adjustment data of Brooke’s Motors at December 31, 2014, follow:

Adjusting data at December 31, 2014:

a. Depreciation on equipment, $ 1,400.

b. Accrued Wages Expense, $ 500.

c. Office Supplies on hand, $ 400.

d. Prepaid Insurance expired during December, $ 300.

e. Unearned Revenue earned during December, $ 3,500.

f. Accrued Service Revenue, $ 900.

2015 transactions:

a. On January 4, Brooke’s Motors paid wages of $ 950. Of this, $ 500 related to the accrued wages recorded on December 31.

b. On January 10, Brooke’s Motors received $ 1,300 for Service Revenue. Of this, $ 900 related to the accrued Service Revenue recorded on December 31.

Requirements

1. Journalize adjusting journal entries.

2. Journalize reversing entries for the appropriate adjusting entries.

3. Refer to the 2015 data. Journalize the cash payment and the cash receipt that occurred in 2015.

Transcribed Image Text:

BROOKE'S MOTORS Unadjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 4,200 Accounts Recelvable 26,500 Office Supplies 800 Prepaid insurance 1,800 Equiment 53,500 Accumulated Deprediaton-Equpment $ 36,300 Accounts Payable 13,300 wages Payable Unearned Revenue 8,500 Common Stock 19,000 Dividends 3,500 Service Revenue 16,500 Depredation Expense-Equipment Wages Expense 2,100 Insurance Expense Utlites Expense Supplies Expense 1,200 Total $ 93,600 $ 93,600