For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended on December 31, 2018. (Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance of work are initially recorded as liabilities.) One-third of the work related to Rs.30,000 cash received in advance is performed this period. Wages of Rs.9,000 are earned by workers but not paid as of December 31, 2018. Depreciation on the company's equipment for 2018 is Rs.19,127. The Office Supplies account had a Rs.480 debit balance on December 31, 2017. During 2018, Rs.5,349 of office supplies are purchased. A physical count of supplies at December 31, 2018, shows Rs.587 of supplies available. The Prepaid Insurance account had a Rs.5,000 balance on December 31, 2017. An analysis of insurance policies shows that Rs.2,200 of unexpired insurance benefits remain at December 31, 2018. The company has earned (but not recorded) Rs.750 of interest from investments in CDs for the year ended December 31, 2018. The interest revenue will be received on January 10, 2019. The company has a bank loan and has incurred (but not recorded) interest expense of Rs.3,500 for the year ended December 31, 2018. The company must pay the interest on January 2, 2019

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Q. For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended on December 31, 2018. (Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance of work are initially recorded as liabilities.)

One-third of the work related to Rs.30,000 cash received in advance is performed this period.
Wages of Rs.9,000 are earned by workers but not paid as of December 31, 2018.
Depreciation on the company's equipment for 2018 is Rs.19,127.
The Office Supplies account had a Rs.480 debit balance on December 31, 2017. During 2018, Rs.5,349 of office supplies are purchased. A physical count of supplies at December 31, 2018, shows Rs.587 of supplies available.
The Prepaid Insurance account had a Rs.5,000 balance on December 31, 2017. An analysis of insurance policies shows that Rs.2,200 of unexpired insurance benefits remain at December 31, 2018.
The company has earned (but not recorded) Rs.750 of interest from investments in CDs for the year ended December 31, 2018. The interest revenue will be received on January 10, 2019.
The company has a bank loan and has incurred (but not recorded) interest expense of Rs.3,500 for the year ended December 31, 2018. The company must pay the interest on January 2, 2019

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions