Question

Journalize the six December 31 adjusting entries for Cole Designs that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. Refer to the Chart of Accounts for exact wording of account titles. Journalize each adjustment as a separate entry.

Cole Designs

Income Statement

For the Year Ended December 31, 2018

1	Fees earned		$77,000.00
2	Expenses:
3	Wages expense	$47,200.00
4	Supplies expense	3,515.00
5	Insurance expense	2,900.00
6	Depreciation expense	2,000.00
7	Total expenses		55,615.00
8	Net income		$21,385.00

  

CHART OF ACCOUNTS
Cole Designs
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 22 Wages Payable 23 Unearned Fees EQUITY 31 Ann Cole, Capital 32 Ann Cole, Drawing	REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Supplies Expense 55 Insurance Expense 56 Depreciation Expense

Answer 1

Journal Entries

1. Accounts Receivable Dr.   $77,000

To Fees Earned                                                                              $77,000

2. Wages Expense Dr. $47,200

            To Cash $47,200

3. Supplies Expense Dr. $3,515

            To Cash $3,515

4. Insurance Expense Dr. $2,900

To Cash $2,900

5. Depreciation Expense Dr. $2,000

To Accumulated Depreciation-Equipment $2,000

Entries for Income Statement

1. Fees Earned Dr .   $77,000

To Income Statement $77,000

2. Income Statement Dr. $47,200

            To Wages Expense $47,200

3. Income Statement Dr. $3,515

            To Supplies Expense $3,515

4. Income Statement Dr. $2,900

To Insurance Expense $2,900

5. Income Statement Dr. $2,000

To Depreciation Expense $2,000

6. Income Statement Dr. $21,385

To Net Income $21,385