For each of the following scenarios, assume a December 31, 2019 year end and (a) determine the type of adjustment, (b) compute the amount of the adjustment, and (c) record the adjusting entry in journal entry format. The Company bought equipment on January 1 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Use the straight-line method to compute the depreciation for this year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months’ insurance purchased on December 1. Compute the amount of expired insurance for the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. A business pays weekly wages of $20,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, compute the amount of accrued wages for the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. Unearned fees at the end of the period were $5,000. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. Unbilled fees at the end of the period were $10,000. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The Company purchased office equipment on April 1 of this year for $9,900. At the time of purchase, the office equipment was estimated to have a useful life of five years and a salvage value of $1,500 at the end of five years. Use the straight-line method to compute the depreciation for this year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. On August 1 of this year, the Company purchased a one-year insurance policy for $900. Compute the amount of expired insurance for the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The Company has a five-day workweek that begins on Monday. The last week of the year begins on Sunday, December 28. The weekly payroll totaled $35,000, compute the amount of accrued wages for the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The Company purchased machinery on May 1 of this year for $28,200. At the time of purchase, the machinery was estimated to have a useful life of six years and a trade-in value of $3,000 at the end of six years. Use the straight-line method to compute the depreciation for this year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. Supplies purchased during the year totaled $3,500. At the end of the period, there were $750 in supplies on hand. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. Fees earned but unbilled at the end of the year were $11,200. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The balance in unearned fees of $13,500 represent the November 1 receipt in advance for services to be provided. Only $8,600 of services were provided by the end of the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text. The Company has a seven-day workweek that begins on Sunday, December 29. The payroll for the week is $42,000, compute the amount of accrued wages for the year. Click or tap here to enter text.Click or tap here to enter text.Click or tap here to enter text.

Name: For each of the following scenarios, assume a December 31, 2019 year e
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Description: For each of the following scenarios, assume a December 31, 2019 year end and (a) determine the type of adjustment, (b) compute the amount of the adjustment, and (c) record the adjusting entry in journal entry format. The Company bought equipment on J

Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…

Answered: For each of the following scenarios,…

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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For each of the following scenarios, assume a December 31, 2019 year end and (a) determine the type of adjustment, (b) compute the amount of the adjustment, and (c) record the adjusting entry in journal entry format.

The Company bought equipment on January 1 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Use the straight-line method to compute the depreciation for this year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months’ insurance purchased on December 1. Compute the amount of expired insurance for the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

A business pays weekly wages of $20,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, compute the amount of accrued wages for the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

Unearned fees at the end of the period were $5,000.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

Unbilled fees at the end of the period were $10,000.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The Company purchased office equipment on April 1 of this year for $9,900. At the time of purchase, the office equipment was estimated to have a useful life of five years and a salvage value of $1,500 at the end of five years. Use the straight-line method to compute the depreciation for this year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

On August 1 of this year, the Company purchased a one-year insurance policy for $900. Compute the amount of expired insurance for the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The Company has a five-day workweek that begins on Monday. The last week of the year begins on Sunday, December 28. The weekly payroll totaled $35,000, compute the amount of accrued wages for the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The Company purchased machinery on May 1 of this year for $28,200. At the time of purchase, the machinery was estimated to have a useful life of six years and a trade-in value of $3,000 at the end of six years. Use the straight-line method to compute the depreciation for this year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

Supplies purchased during the year totaled $3,500. At the end of the period, there were $750 in supplies on hand.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

Fees earned but unbilled at the end of the year were $11,200.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The balance in unearned fees of $13,500 represent the November 1 receipt in advance for services to be provided. Only $8,600 of services were provided by the end of the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

The Company has a seven-day workweek that begins on Sunday, December 29. The payroll for the week is $42,000, compute the amount of accrued wages for the year.

Click or tap here to enter text.
Click or tap here to enter text.
Click or tap here to enter text.

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