Question

Below are transactions for Wolverine Company during 2021.

Answer 1

Answer:

a.Unearned revenue $1,550

Service revenue $1,550

b. Dr Insurance expense $6,060

Cr Prepaid insurance $6,060

c. Dr Salaries expense $2,100

Cr Salaries payable $2,100

d. Dr Interest expense $175

Cr Interest payable $175

e. Dr Supplies expense $3,000

Cr Supplies $3,000

Explanation:

Preparation to Record the necessary adjusting entries at December 31, 2018, for Wolverine Company.

a.Unearned revenue $1,550

Service revenue $1,550

($3,100/2)

(Being to record rent revenue)

b. Dr Insurance expense $6,060

Cr Prepaid insurance $6,060

($12,120*6/12)

(Being to record insurance expense l

c. Dr Salaries expense $2,100

Cr Salaries payable $2,100

(Being to record salaried expense)

d. Dr Interest expense $175

($10,500*10%*2/12)

Cr Interest payable $175

(Being to record Interest expense)

e. Dr Supplies expense $3,000

Cr Supplies $3,000

($910+$2,500-$410)

(Being to record Supplies expense)