Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Wages of $13,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,600. The Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,870 of supplies are purchased. A physical count of supplies at December 31 shows $537 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,500 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $600 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31.

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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Use the following information for the Exercises below. (Algo)

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[The following information applies to the questions displayed below.]

Wages of $13,000 are earned by workers but not paid as of December 31.
Depreciation on the company’s equipment for the year is $10,600.
The Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,870 of supplies are purchased. A physical count of supplies at December 31 shows $537 of supplies available.
The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,500 of unexpired insurance benefits remain at December 31.
The company has earned (but not recorded) $600 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4

For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31.

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