question archive Depreciation on the company's equipment for 2015 is computed to be $11,000 b
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Depreciation on the company's equipment for 2015 is computed to be $11,000 b. The Prepaid Insurance account had a $7.000 debit balance on December 31, 2015, before adjusting for the costs of any expired coverage An analysis of the company's insurance policies showed that $1240 of unexpired insurance coverage remains. c. The Office Supplies account had a $340 debit balance on December 31, 2014, and $2,680 of office supplies were purchased during the year. December 31, 2015, physical count showed $101 of supplies available d. Two-thirds of the work related to $12,000 of cash received in advance was pertormed this period. e. The Prepaid Insurance account had a $5,400 detil balances December 31, 2015, befonsexjusling for the costs of any expired coverage. An analysis of insurance policies showed that $1,160 of coverage had expired f. Wage expenses of $1.000 have been incurred but are not paid as at December 31, 2015, Prepare adjusting journal entries for the year ended (dale: a) December 31, 2015, for each of the above separate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also, assume that fees collected in advance of work are initially recorded as liabilities (Omit the "S" sign in your response.) Debit Credit General Journal Accueild depreciation equipment (Click lose :) Click to select) Click to select) IC Click to selec:1) (Click to select) V d V Click to select) Click to select) (Click to see!) (Click to select) (Click to select) (Click to select)
Date | Description | Debit | Credit |
a) | Depriciation Expense - Equipment Account | 11000 | |
Accumulated Depriciation Equipment Account | |||
( Being depriciation charged on equipment ) | |||
b) | Insureance Expense Account ( 7000 - 1240 ) | 5760 | |
Prepaid Insureance Account | 5760 | ||
( Being prepaid insureance expired ) | |||
c) | Office Supplies Expense Account ( 340 + 2680 - 401 ) | 2619 | |
Office Supplies Account | 2619 | ||
( Being office supplies expense adjusted ) | |||
d) | Unearned Revenue Account | 8000 | |
Service Revenue Account | 8000 | ||
( Being two-thireds of the advance adjusted ) | |||
e) | Insureance Expense Account | 4160 | |
Prepaid Insureance Account | 4160 | ||
( Being prepaid insureance adjusted ) | |||
f) | Wages Expenses Account | 1000 | |
Outstanding Wages Account | 1000 | ||
( Being outstanding wages adjusted ) |