Answered: Depreciation on the company’s wind…

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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Question

Depreciation on the company’s wind turbine equipment for the year is $6,700.
The Prepaid Insurance account for the solar panels had a $3,700 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,450 of unexpired insurance coverage remains at year-end.
The company received $8,100 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed.
As of December 31, $2,900 in wages expense for the organic produce workers has been incurred but not yet paid.
As of December 31, the company has earned, but not yet recorded, $570 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12.

Required

For each of the above separate cases, prepare the required December 31 year-end adjusting entries.

Depreciation on the company’s wind turbine equipment for the year is $6,700.
Prepaid Insurance account for the solar panels had a $3,700 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,450 of unexpired insurance coverage remains at year-end
The company received $8,100 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed.
As of December 31, $2,900 in wages expense for the organic produce workers has been incurred but not yet paid.
As of December 31, the company has earned, but not yet recorded, $570 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12.

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