Depreciation on the company's equipment for the year is computed to be $14,000.The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $540 of unexpired insurance coverage remains.The Supplies account had a $430 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $507 of supplies available.One-fourth of the work related to $11,000 of cash received in advance was performed this period.The Prepaid Rent account had a $5,300 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,760 of prepaid rent had expired.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.

Adjusting Entries Are Journal Entries Recorded At The End Of The Reporting Period To Change The…

Answered: Depreciation on the company's equipment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Depreciation on the company's equipment for the year is computed to be $14,000.
The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $540 of unexpired insurance coverage remains.
The Supplies account had a $430 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $507 of supplies available.
One-fourth of the work related to $11,000 of cash received in advance was performed this period.
The Prepaid Rent account had a $5,300 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,760 of prepaid rent had expired.
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.

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