Question

Recorded revenues of $162 on December 8, including $41 on credit and $121 collected in cash.

Recognized salaries and wages expense on December 9, $86 paid in cash.

Collected accounts receivable on December 10, $25.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $6.

Supplies counted on December 31, 2018, $12.

Depreciation for the year on the equipment, $5.

Interest of $1 to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $13.

Income tax for the year was $7. It will be paid in 2019.

Answer 1

Solution

Adjusting Entries:

Date	Account Titles and Explanation	Ref. No.	Debit	Credit
1	Amortization Expense - Software		$6
	Accumulated Amortization -Software			$6
	(To record amortization on software)
2	Depreciation Expense - Equipment		$5
	Accumulated Depreciation - Equipment			$5
	(To record depreciation on equipment)
3	Interest Expense		$1
	Interest Payable			$1
	(To record accrued interest on notes payable)
4	Salaries and Wages Expense		$13
	Salaries and Wages Payable			$13
	(To record unpaid salaries)
5	Income Tax Expense		$7
	Income Tax Payable			$7

Note: The adjusting entry for supplies expense has not been posted, as no information about the beginning supplies or supplies purchased is provided in the question. However, the supplies expense would equal to beginning supplies + supplies purchased – ending supplies.

Entries for the first three transactions:

Date	Account Titles and Explanation	Ref. No.	Debit	Credit
1	Cash		$121
	Accounts Receivable		$41
	Revenue			$162
	(To record revenues collected in cash and on account)
2	Salaries and Wages Expense		$86
	Cash			$86
	(To record salaries and wages paid)
3	Cash		$25
	Accounts Receivable			$25
	(To record cash collected from AR)