Required information [The following information applies to the questions displayed below.] a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,440. c. The Supplies account had a $450 debit balance at the beginning of the year. During the year, $6,426 of supplies are purchased. A physical count of supplies at December 31 shows $693 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year- end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the ond on lan

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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Question
Put everything in the general journal
Required information
[The following information applies to the questions
displayed below.]
a. Wages of $8,000 are earned by workers but not paid as
of December 31.
b. Depreciation on the company's equipment for the year is
$11,440.
c. The Supplies account had a $450 debit balance at the
beginning of the year. During the year, $6,426 of supplies
are purchased. A physical count of supplies at December
31 shows $693 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at
the beginning of the year. An analysis of insurance
policies shows that $1,600 of unexpired insurance
benefits remain at December 31.
e. The company has earned (but not recorded) $850 of
interest revenue for the year ended December 31. The
interest payment will be received 10 days after the year-
end on January 10.
f. The company has a bank loan and has incurred (but not
recorded) interest expense of $2,500 for the year ended
December 31. The company will pay the interest five days
after the year-end on January 5.
For each of the above separate cases, prepare adjusting entries
required of financial statements for the year ended December
31.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,440. c. The Supplies account had a $450 debit balance at the beginning of the year. During the year, $6,426 of supplies are purchased. A physical count of supplies at December 31 shows $693 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year- end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31.
Transaction
General Journal
Debit
Credit
а.
Record entry
Clear entry
View general jou
Transcribed Image Text:Transaction General Journal Debit Credit а. Record entry Clear entry View general jou
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