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 accounts: Interest Receivable; Prepaid Insurance;
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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