Question

Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)a. Depreciation for the current year includes​Equipment, $2,200.b. Each​ Monday,pays employees for the previous​ week's work. The amount of weekly payroll is $8,400 for a​ seven-day workweek​ (Monday to​Sunday). This​ year, December 31 falls onThursday.c. During the​ year, $2,100. Perryville purchased office supplies for $3,400​, and at December 31 the office supplies on hand totaled$1,200.​(Assume that PerryvillePerryville debits an asset account when supplies are​ purchased.)d. prepaid a two full​ years' insurance on April 1 of the current​ year, $6,000. Record insurance expense for the year ended December 31. ​(When the policy was purchased on April ​1, assume that PerryvillePerryville debited an asset​ account.)e. had earned $2,900 of unearned revenue. ​(When the cash was​ received, assume that a liability account was​credited.)f. had incurred​ (but not​ recorded) $140 of interest expense on a note payable. The interest will not be paid until February 28.PerryvillePerryvilleg. billed customers $5,500 for welding services performed.

Answer 1

Answer:

a.

Dr Depreciation expenses                             2,200

Cr Accumulated depreciation - Equipment  2,200

( to record the depreciation expenses of equipment during the year)

b.

Dr Wages expenses            4,800

Cr Wages payable               4,800

( to record wages payable as at 31 December; calculated as Daily salary expenses x Number of working days from the last time the wages expenses is recorded ( that is, Sunday) to 31 December ( given as Thursday)  which is 4 days or 8,400/7 * 4 = $4,800.

c.

Dr Supplies expenses             4,300

Cr Office supplies                   4,300

( to record office supplies consumed during the year calculated as Opening Balance of Office supplies + Purchase during the year - Ending balance of Office supplies = 2,100 + 3,400 - 1,200 = $4,300)

d.

Dr Insurance expenses          2,250

Cr Prepaid insurance            2,250

(to record 09-month insurance expenses calculated as 6,000/24 * 9 = $2,250)

e.

Dr Unearned Revenue      2,900

Cr Revenue                       2,900

(to record revenue earned )

f.

Dr Interest expenses      140

Cr Interest payable        140

( to record interest expenses incurred but not paid)

g.

Dr Account Receivable   5,500

Cr Revenue                      5,500

( to record revenue earned but not yet received)

Explanation: