a. Depreciation on the company's wind turbine equipment for the year is $6,100.b. The Prepaid Insurance account for the solar panels had a $3,100 debit balance at December 31 before adjusting for the costs of anyexpired coverage. Analysis of prepaid insurance shows that $1,150 of unexpired insurance coverage remains at year-end.c. The company received $6,300 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainabilityconsulting work had been performed.d. As of December 31, $2,300 in wages expense for the organic produce workers has been incurred but not yet paid.e. As of December 31, the company has earned, but not yet recorded, $510 of interest revenue from investments in sociallyresponsible bonds. The interest revenue is expected to be received on January 12.For each of the above separate cases, prepare the required December 31 year-end adjusting entries. Journal entry worksheet123The company received $6,300 cash in advance for sustainability consultingwork. As of December 31, one-third of the sustainability consulting work hadbeen performed.Note: Enter debits before credits.TransactionGeneral JournalDebitCreditС.

Answered: Journal entry worksheet 1 4 The company…

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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a. Depreciation on the company's wind turbine equipment for the year is $6,100.
b. The Prepaid Insurance account for the solar panels had a $3,100 debit balance at December 31 before adjusting for the costs of any
expired coverage. Analysis of prepaid insurance shows that $1,150 of unexpired insurance coverage remains at year-end.
c. The company received $6,300 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, $2,300 in wages expense for the organic produce workers has been incurred but not yet paid.
e. As of December 31, the company has earned, but not yet recorded, $510 of interest revenue from investments in socially
responsible bonds. The interest revenue is expected to be received on January 12.
For each of the above separate cases, prepare the required December 31 year-end adjusting entries.

Journal entry worksheet
1
2
3
The company received $6,300 cash in advance for sustainability consulting
work. As of December 31, one-third of the sustainability consulting work had
been performed.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
С.

Expert Solution

Step 1

Originally unearned revenue when given in advance journal entry is

Consulting revenue a/c dr. $6300

Unearned revenue a/c cr. $6300

Unearned revenue when given in advance is a liability and once some portion or whole work is done then this liability gets reduced to that portion of work completed. when a liability gets reduced it is debited.

In the given case it is said that by 31st December, 1/3rd of the consulting work was done. Therefore the revenue is recognised only $2100 ($6300 * 1/3). So the entry is reversed.

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