Answer:Incomplete Question, You omitted the values for the following
supplies remaining at year-end: $700
Wages earned by workers but not yet paid at year-end: $500
Explanation:
1. To Record the journal entries required for December, excluding the December 31 year-end adjusting entries.
Cash Paid for prepaid insurance
Date Account and Explanation Debit Credit
1st Dec Prepaid Insurance $24,000
Cash $24,000
Supplies purchased in cash
7th Dec Supplies $2000
Cash $2,000
13th Dec No ENTRY Roland Co agreed to do but has not done itr yet.
Advance received from ABX
24th Dec Cash $4,000
Unearned Revenue $4,000
2. To Record the December 31 year-end adjusting entries for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue.
Insurance expense
Date Account and Explanation Debit Credit
31st Dec Insurance Expense $1,000
Prepaid Expense $1,000
Calculation.24 month insurance policy for $24,000 cash.
Insurance for a month = 24,000/24= 1000
Supplies Expense
Date Account and Explanation Debit Credit
31st Dec Supplies Expense $1,300
Supplies $1,300
Calculation :purchased supplies for $2,000 --supplies remaining at year-end, $700= $1,300
To record Wages earned by workers but not yet paid at year-end: $500
Date Account and Explanation Debit Credit
31st Dec Wages Expense $500
Wages Payable $500
Service Revenue from Telo
Date Account and Explanation Debit Credit
31st Dec Accounts receivable $6,000
Service Revenue $6,000
calculation=Job Completion at Year-End x received cash of worth of work for Telo = 60% x 10,000 = %6,000
Service Revenue from Abx
Date Account and Explanation Debit Credit
31st Dec Unearned Revenue $1,000
Service Revenue $1,000
calculation=Job Completion at Year-End x cash in advance to perform work = 25% x 4,000 = $1,000
3. Journal entry for January
Payment Of wages recorded
Date Account and Explanation Debit Credit
5 Jan Wages Payable $500
Wages Expense (800-500) $300
Cash $800
Payments from Telo Recorded
Date Account and Explanation Debit Credit
12 Jan Cash $10,000
Account Receivable $6,000
Service Revenue(10,000-6000) $4,000
