Answer:
Check the explanation for the answer
Explanation:
Wolverine Company
Adjusted journal entries for the year ended 31st December 2021.
<u>DATE PARTICULARS DEBIT ($) CREDIT ($)</u>
1/12/2021 Rent receivable 4000
Deferred revenue 4000
Being the correction of rent deferred
revenue
1/7/2021 Insurance expenses 13200
Prepaid insurance 13200
Being the correction of error of prepaid
insurance
1/1/2020 Salaries expenses 3000
Salaries payable 3000
Being the correction of salaries
expenses
1/11/2021 Loan interest expenses 1500
Loan payable 1500
Being the correction of loan
expenses
1/8/2020 Office supplies expenses 4400
Prepaid office supplies 4400
Being the correction of error of office
supplies
Total <u>26100 26100</u>
The word ’journal’ means a dairy or day books which is use for recording of any financial transaction. It helps in reducing the possibility of an error when transactions are first recorded. The journal is not part of the double entry system; its purpose is giving details of entries, which will appear in the Ledger.
Deferred revenue which can also be refer to as unearned revenue are income receive on goods or services which have not been rendered to the customer, because the service has not been rendered to the payer, it is a debt or liability to the company so this should be treated as a credit entry under Journal entry.
Accrued expenses: these are expenses owed or due for payment by the company which has not been paid, for example, owing of employment wages or salaries at the end of accounting period, the expenses should be debited under journal entry and wages payable should be credited.
