a. Wages of $10,000 are earned by workers but not paid as of December 31, 2017....

a. Wages of $10,000 are earned by workers but not paid as of December 31, 2017.

b. Depreciation on the company’s equipment for 2017 is $10,960.

c. The Office Supplies account had a $330 debit balance on December 31, 2016. During 2017, $4,656 of office supplies are purchased. A physical count of supplies at December 31, 2017, shows $516 of supplies available.

d. The Prepaid Insurance account had a $5,000 balance on December 31, 2016. An analysis of insurance policies shows that $2,800 of unexpired insurance benefits remain at December 31, 2017.

e. The company has earned (but not recorded) $750 of interest from investments in CDs for the year ended December 31, 2017. The interest revenue will be received on January 10, 2018.

f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31, 2017. The company must pay the interest on January 2, 2018.

For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31, 2017.

Expert Solution

	Account Titles and Explaination	Debit	Credit
a.	Wages Expense	$ 10,000
	Wages Payable		$ 10,000
	(Being wages expense recorded)

b.	Depreciation expense - Equipment	$ 10,960
	Accumulated depreciation - Equipment		$ 10,960
	(Being depreciation expense recorded)

c.	Office supplies expense ($330 + $4,656 - $516)	$ 4,470
	Office supplies		$ 4,470
	(being cost of goods sold recorded)

d.	Insurance expense ($5,000 - $2,800)	$ 2,200
	Prepaid insurance		$ 2,200
	(Being insurance expense incurred)

e.	Interest receivalbe	$ 750
	Interest revenue		$ 750
	(Being interest to be recived recorded)

f.	Interest expense	$ 4,500
	Interest payable		$ 4,500
	(Being interest to be payable recorded)

ekkarill92 answered 2 years ago

Wages of $8,000 are earned by workers but not paid as of December 31, 2017. Depreciation...

Wages of $8,000 are earned by workers but not paid as of December 31, 2017. Depreciation on the company’s equipment for 2017 is $18,000. The Office Supplies account had a $240 debit balance on December 31, 2016. During 2017, $5,200 of office supplies are purchased. A physical count of supplies at December 31, 2017, shows $440 of supplies available. The Prepaid Insurance account had a $4,000 balance on December 31, 2016. An analysis of insurance policies shows that $1,200 of...

Wages of $12,000 are earned by workers but not paid as of December 31. Depreciation on...

Wages of $12,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,240. The Office Supplies account had a $330 debit balance at the beginning of the year. During the year, $4,879 of office supplies are purchased. A physical count of supplies at December 31 shows $538 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies...

Wages of $13,000 are earned by workers but not paid as of December 31. Depreciation on...

Wages of $13,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $11,560. The Office Supplies account had a $450 debit balance at the beginning of December. During December, $4,967 of office supplies are purchased. A physical count of supplies at December 31 shows $547 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of December. An analysis of insurance policies shows that $3,000...

Wages of $9,000 are earned by workers but not paid as of December 31. Depreciation on...

Wages of $9,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,840. The Supplies account had a $490 debit balance at the beginning of the year. During the year, $6,096 of supplies are purchased. A physical count of supplies at December 31 shows $660 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that...

Look Builders pays its workers every two weeks. As of December 31 of Year 1, workers have earned wages of $9,000 for which they have not yet been paid

Look Builders pays its workers every two weeks. As of December 31 of Year 1, workers have earned wages of $9,000 for which they have not yet been paid; they will not be paid these wages until January of next year. The correct adjusting entry was made on December 31. On January 5 of Year 2, Look Builders paid total wages to the employees of $13,000. Of the $13,000 paid, $9,000 related to work performed last year.Which one of the...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid in January (’18) are $35,875; associated payroll taxes on these wages are $2,910. (Record in two separate adjusting entries. The payroll taxes are an expense to the company for unemployment benefits and recorded as a payable to the state & federal taxing authority.) 2. The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2017. On May 1,2017 a client...

Keisler Corporation reports: 2016 2017 Equipment, December 31 $10,000 $20,000 Accumulated depreciation, December 31 ($5,000) ($7,000)...

Keisler Corporation reports: 2016 2017 Equipment, December 31 $10,000 $20,000 Accumulated depreciation, December 31 ($5,000) ($7,000) Depreciation Expense of Equipment $5,000 Gain on disposal of Equipment $2,000 During 2017, Keisler sold equipment which has original cost of $5,000. Additional purchase of equipment in 2017 was paid in cash. No other investing activities are reported in 2017. What is cashflows by investing activities in 2017? Group of answer choices $(10,000). $4,000. $(8,000). $(11,000).

Acheron Industries’ fiscal year ends on December 31st. Wages earned from Dec 1 – Dec 31, 2024 totaled $836,000

Question 3 Acheron Industries’ fiscal year ends on December 31st. Wages earned from Dec 1 – Dec 31, 2024 totaled $836,000. Wages of $35,000 that were earned between December 15th and December 31st will not be paid until after the first of the year. Record the journal entry on December 31, 2024. Question 4 On October 1, 2024, Tasmanian Traders was paid $217,000 cash for 700 hours of service to be completed within the next 9 months. On December...

Aurora and Oscar separated in 2017 and divorced in October 2019. She earned $40,000 in wages...

Aurora and Oscar separated in 2017 and divorced in October 2019. She earned $40,000 in wages and paid more than half the cost of keeping up her home in 2019. Aurora and Oscar have a son, Milo, who is 17 years old and unmarried. Aurora signed Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) allowing Oscar to claim Milo in 2019. Milo is a full-time student working towards a degree in computer information systems....

The following balances are available for Chrisman Company: December 31 2017 2016 Cash $8,000 $10,000 Accounts...

The following balances are available for Chrisman Company: December 31 2017 2016 Cash $8,000 $10,000 Accounts receivable 20,000 15,000 Inventory 15,900 26,600 Prepaid rent 9,000 6,000 Land 75,000 75,000 Plant and equipment 400,000 300,000 Accumulated depreciation (65,000) (30,000) Totals $462,900 $402,600 Accounts payable $12,000 $10,000 Income taxes payable 3,000 5,000 Short-term notes payable 35,000 25,000 Bonds payable 75,000 100,000 Common stock 200,000 150,000 Retained earnings 137,900 112,600 Totals $462,900 $402,600 Bonds were retired during 2017 at face value,...

Question