Entries can draw from this partial chart of accounts: Interest Receivable; Prepaid Insurance; Accumulated Depreciation—Equipment; Wages Payable; Unearned Revenue; Consulting Revenue; Interest Revenue; Wages Expense; Insurance Expense; Interest Expense; and Depreciation Expense—Equipment. a. Depreciation on the company’s wind turbine equipment for the year is $5,000. b. The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $600 of unexpired insurance coverage remains at year-end. c. The company received $3,000 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $1,200 in wages expense for the organic produce workers have been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $400 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12.
Entries can draw from this partial chart of
Depreciation
Wages Expense; Insurance Expense; Interest Expense; and Depreciation Expense—Equipment.
a. Depreciation on the company’s wind turbine equipment for the year is $5,000.
b. The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before
adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $600 of unexpired
insurance coverage remains at year-end.
c. The company received $3,000 cash in advance for sustainability consulting work. As of December 31,
one-third of the sustainability consulting work had been performed.
d. As of December 31, $1,200 in wages expense for the organic produce workers have been incurred but
not yet paid.
e. As of December 31, the company has earned, but not yet recorded, $400 of interest revenue from investments
in socially responsible bonds. The interest revenue is expected to be received on January 12.
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