Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $760 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $100 of supplies on hand. b. Wages earned by employees during December 2018, unpaid and unrecorded at Decern:ber 31, 2018, amounted to $2,800. The last paychecks were issued December 28; the next payments will be made on January 6, 2019. C. A portion of the store's basement is now being rented for $1,010 per month to K. Frey. On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $6,060. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018. d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2018 is $1,100, although none has been recorded yet. e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $2,460. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018. f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $660. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019. Required: For each situation, prepare the adjusting journal entry that Jaworski's should record at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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I uploaded the first 3 parts of this question and it was answered perfectly! Now I need parts d,e, and f answered!

Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018
have been journalized and posted. The following data are available to determine adjusting journal entries:
a. The unadjusted balance in Supplies was $760 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at
December 31, 2018. A year-end count showed $100 of supplies on hand.
b. Wages earned by employees during December 2018, unpaid and unrecorded at Decert:ber 31, 2018, amounted to $2,800. The last
paychecks were issued December 28; the next payments will be made on January 6, 2019.
C. A portion of the store's basement is now being rented for $1,010 per month to K. Frey. On November 1, 2018, the store collected six
months' rent in advance from Frey in the amount of $6,060. It was credited in full to Deferred Revenue when collected. The
unadjusted balance in Rent Revenue was $0 at December 31, 2018.
d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2018 is $1,100, although none
has been recorded yet.
e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $2,460. This was the amount paid in the middle of the
year for a two-year insurance policy with coverage beginning on July 1, 2018.
f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed
amounting to $660. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019.
Required:
For each situation, prepare the adjusting journal entry that Jawo
a transaction/event, select "No Journal Entry Required" in the first account field.)
should record at December 31, 2018. (If no entry is required for
View transaction list
Journal entry worksheet
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Expert Solution

Step 1

d. Depreciation expense is not recorded for the period on delivery equipment for $1,100. So, the depreciation expense will be recorded.

e. Prepaid insurance for $2,460 is for 24 months paid on July 1. From July 1 to Dec 31, it has been accrued for 6 months. So, the expense will be recorded for the 6 months.

f. Work for $660 has been completed but cash has not been received. It is the revenue for this period and therefore it will be recorded as revenue.

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