Question

For each of the following separate situations, prepare he necessary accounting adjustments using the financial statement effects template.
a. Unrecorded depreciation on equipment is $610.
b. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid.
c. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash.
d. Nine months ago, The Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Contract Liabilities for $624.
e. At the end of the period, employee wages of $965 have been incurred but not yet paid or recorded.6. At the end of the period, $300 of interest income has been earned but not yet received or recorded.

Answer 1

Answer:

depreciation expense equipment 610 debit

  accumulated depreciation equipment  610 credit

utilities expense   390 debit

  utilities payable      390 credit

rent expense  700 debit

           prepaid rent       700 credit

insurance expense  468 debit

        prepaid insurance 468 credit

wages expense 965 debit

   wages payables  965 credit

interest receivables 300 debit

      interest revenue      300 credit

Explanation:

(C) rent calculations

2,800 --> four period of rent

2,800 / 4 = 700 per period

(D) insurance calculations

624 for the entire years

expired  9 months in this period

$624 x 9/12 = 468