a. Depreciation on the company's equipment for the year is computed to be $15,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,600 of unexpired insurance coverage remains. c. The Supplies account had a $450 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $531 of supplies available. d. One-fourth of the work related to $11,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,300 of prepaid rent had expired. f. Wage expenses of $6,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended December 31 for each separate situation. View transaction list Journal entry worksheet < 1 2 3 4 5 6 Depreciation on the company's equipment for the year is computed to be $15,000. Note: Enter debits before credits. Transaction General Journal Debit Credit
a. Depreciation on the company's equipment for the year is computed to be $15,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,600 of unexpired insurance coverage remains. c. The Supplies account had a $450 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $531 of supplies available. d. One-fourth of the work related to $11,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,300 of prepaid rent had expired. f. Wage expenses of $6,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended December 31 for each separate situation. View transaction list Journal entry worksheet < 1 2 3 4 5 6 Depreciation on the company's equipment for the year is computed to be $15,000. Note: Enter debits before credits. Transaction General Journal Debit Credit
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 10CE
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Question
Transcribed Image Text:a. Depreciation on the company's equipment for the year is computed to be $15,000.
b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of
any expired coverage. An analysis of the company's insurance policies showed that $1,600 of unexpired
insurance coverage remains.
c. The Supplies account had a $450 debit balance at the beginning of the year, and $2,680 of supplies were
purchased during the year. The December 31 physical count showed $531 of supplies available.
d. One-fourth of the work related to $11,000 of cash received in advance was performed this period.
e. The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of
expired prepaid rent. An analysis of the rental agreement showed that $3,300 of prepaid rent had expired.
f. Wage expenses of $6,000 have been incurred but are not paid as of December 31.
Prepare adjusting journal entries for the year ended December 31 for each separate situation.
View transaction list
Journal entry worksheet
<
1
2
3 4
5
6
Depreciation on the company's equipment for the year is computed to be
$15,000.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
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