Answer:
(1). Wages expense(debit) => 8000.
wages payable (credit) => 8000.
(2). depreciation expense-equipment(debit) => $10,480.
accumulated depreciation-equipment => $10,480.
(3). Supplies expense(debit) => 4,977.
office supplies(credit) => 4977.
(4). Insurance expense(debit) => 3,400
prepaid insurance(credit) => 3,400.
(5000 - 1600).
(5). Interest receivable(debit) => $650
interest revenue(credit) => $650
(6). interest expense(debit) => $2,500
interest payable(credit) => $2,500.
Explanation:
So, our main aim in this question is to be able to prepare prepare an " adjusting entries" required of financial statements for the year ended (date of) December 31.
An adjusting entries can simply be defined as entry that is used in showing the expenses and income of a particular organization or company.
Thus, the entries can be written as:
(1). Wages expense(debit) => 8000.
wages payable (credit) => 8000.
(2). depreciation expense-equipment(debit) => $10,480.
accumulated depreciation-equipment => $10,480.
(3). Supplies expense(debit) => 4,977.
office supplies(credit) => 4977.
(4). Insurance expense(debit) => 3,400
prepaid insurance(credit) => 3,400.
(5000 - 1600).
(5). Interest receivable(debit) => $650
interest revenue(credit) => $650
(6). interest expense(debit) => $2,500
interest payable(credit) => $2,500.
