Preparing and Journalizing Adjusting EntriesFor each of the following separate situations, prepare thenecessary adjustments...

Preparing and Journalizing Adjusting Entries

For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form.

1. Unrecorded depreciation on equipment is $1,220.
2. On the date for preparing financial statements, an estimated utilities expense of $780 has been incurred, but no utility bill has yet been received or paid.
3. On the first day of the current period, rent for four periods was paid and recorded as a $5,600 debit to Prepaid Rent and a $5,600 credit to Cash.
4. Nine months ago, The Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $1,248 and crediting Unearned Premium Revenue for $1,248. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared.
5. At the end of the period, employee wages of $1,930 have been incurred but not yet paid or recorded.
6. At the end of the period, $600 of interest income has been earned but not yet received or recorded.

(a) using the financial statement effects template

Balance SheetTransactionCash Asset+Noncash Assets-Contra Assets=Liabilities+Contributed Capital+Earned Capital(1) Adjusting entry for depreciation: equipment+-=++(2) Adjusting entry for utilities expense+-=++(3) Adjusting entry for rent expense+-=++(4) Adjusting entry for premium revenues+-=++(5) Adjusting entry for wage expense+-=++(6) Adjusting entry for interest earned+-=++

Income StatementRevenue-Expenses=Net Income-=-=-=Correct

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ekkarill92 answered 2 years ago

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