Question

Requirement

1.	Journalize the adjusting entry needed on DecembeR 31, the end of the current accounting​ period, for each of the following independent cases affecting GreensGreens Corporation. Include an explanation for each entry.

a.	The details of Prepaid Insurance are as​ follows: Prepaid Insurance Jan 1 Bal 2,200 Mar 31 3,300 GreensGreens prepays insurance on MarchMarch 31 each year. At December 31December 31​, $ 400$400 is still prepaid.
b.	GreensGreens pays employees each Friday. The amount of the weekly payroll is $ 5 comma 700$5,700 for a​ five-day work week. The current accounting period ends on TuesdayTuesday.
c.	GreensGreens has a note receivable. During the current​ year, GreensGreens has earned accrued interest revenue of $ 400$400 that it will collect next year.
d.	The beginning balance of supplies was $ 2 comma 900$2,900. During the​ year, GreensGreens purchased supplies costing $ 6 comma 100$6,100​, and at December 31December 31 supplies on hand total $ 2 comma 100$2,100.
e.	GreensGreens is providing services for OrcaOrca ​Investments, and the owner of OrcaOrca paid GreensGreens an annual service fee of $ 12 000$12,000. GreensGreens recorded this amount as Unearned Service Revenue. GreensGreens estimates that it has earned 80 %80% of the total fee during the current year.
f.	Depreciation for the current year includes Office​ Furniture, $ 3500 . $3,500​, and​ Equipment, $ 6 200$6,200.

a. Details of the Prepaid Insurance account reveal a January 1​ (beginning of the​ year) debit balance of $ 2200 and a debit to the account on March 31 for $ 3300 to record the payment of an annual insurance premium. At December 31​, $ 400 is still prepaid. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.) Journal Entry Date Accounts and Explanation Debit Credit Dec 31 Insurance Expense 5100 Prepaid Insurance 5100

b. Greens pays employees each Friday. The amount of the weekly payroll is $ 5700 for a​ five-day work week. The current accounting period ends on a Tuesday. Journal Entry Date Accounts and Explanation Debit Credit Dec 31 Salary Expense 5700 Salary Payable 5700

c. Greens has a note receivable. During the current​ year, Greens has earned accrued interest revenue of $ 400 that it will collect next year. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

d. The beginning balance of supplies was $ 2900. During the​ year, Greens purchased supplies for $ 6100​, and at December 31 the supplies on hand total $2100. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

e. Greens is providing services for Orca ​Investments, and the owner of Orca paid Greens $ 12000 as the annual service fee. Greens recorded this amount as Unearned Service Revenue. Greens estimates that it has earned 80 % of the total fee during the current year. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

f. Depreciation for the current year includes Office​ Furniture, $ 3 comma 500​, and​ Equipment, $ 6200. ​(Make one journal entry for all​ depreciation.) Journal Entry Date Accounts and Explanation Debit Credit Dec 31

Answer 1

Answer:

No.	Date	General Journal	Debit	Credit
a	Dec 31	Insurance Expense	5,100
		Prepaid Expense		5,100
		(To record insurance expired)
b.	Dec 31	Salary Expense ($5,700 * 2/5)	2,280
		Salary Payable		2,280
		(To record Salary accrued)
c.	Dec 31	Interest Receivable	400
		Interest Revenue		400
		(To record Interest earned)
d.	Dec 31	Supplies Expense	6,900
		Supplies($2,900 +$6,100 -$2,100)		6,900
		(To record Supplies used)
e.	Dec 31	Unearned Service Revenue	9,600
		Service Revenue ($12,000 * 80%)		9,600
		(To record Revenue earned)
f.	Dec 31	Depreciation Expense	9,700
		Accum Depreciation-Off Furniture		3,500
		Accum Depreciation-Equipment		6,200

Calculation:

a. Insurance Expense = $2,200 + $3,300 - $400 = $5,100