a. Wages of $6,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $10,840. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended Decem 31.
a. Wages of $6,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $10,840. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended Decem 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
a. Wages of $6,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company's equipment for the year is $10,840.
c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of
supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of
insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31.
The interest payment will be received 10 days after the year-end on January 10.
f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the
year ended December 31. The company will pay the interest five days after the year-end on January 5.
Check my work
Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December
31.
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Transcribed Image Text:Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
a. Wages of $6,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company's equipment for the year is $10,840.
c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of
supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of
insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31.
The interest payment will be received 10 days after the year-end on January 10.
f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the
year ended December 31. The company will pay the interest five days after the year-end on January 5.
Check my work
Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December
31.
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5 of 7
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