Question

Journalize the adjusting entry needed on December31, the end of the current accounting period, for each of the following independent cases affecting Jackson Corporation. Include an explanation for each entry. 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 Jackson Corporation. Include an explanation for each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Details of the Prepaid Insurance account reveal a January 1 (beginning of the year) debit balance of $3,000 and a debit to the account on March 31 for $3,000 to record the payment of an annual insurance premium. At December 31, $800 is still prepaid. b. Jackson pays employees each Friday. The amount of the weekly payroll is $6,200 for a five-day work week. The current accounting period ends on a Thursday. c. Jackson has a note receivable. During the current year, Jackson has earned accrued interest revenue of $500 that it will collect next year. d. The beginning balance of supplies was $2,800. During the year, Jackson purchased supplies for $6,100, and at December 31 the supplies on hand total $2,200. e. Jackson is providing services for Seal Coast Investments, and the owner of Seal Coast paid Jackson $11,700 as the annual service fee. Jackson recorded this amount as Unearned Service Revenue. Jackson estimates that it has earned 60 % of the total fee during the current year. f. Depreciation for the current year includes Office Furniture, $3,700, and Equipment, $ 6,200. Make a compound entry.

Answer 1

JACKSON CORPORATION
Adjusting journal Entires as at December 31
Event	Account title	Debit	Credit
a	Insurance Expense	5200
	Prepaid Insurance		5200
	(Insurance expired recorded : $3,000+$3,000 - $800)
b	Salary Expense	4960
	Salary Payable		4960
	(Salary accrued for the last week :($6,200/5)X4
c	Interest Receivable	500
	Interest Revenue		500
	($500 interest to be collected next year recorded)
d	Supplies Expense	6700
	Supplies		6700
	(Supplies used during the year :$2,800+$6,100-$2,200)
e	Unearned Service Revenue	7020
	Service Revenue		7020
	(service revenue earned for the year : 60% of $11,700)
f	Depreciation Expense - Office furniture	3700
	Depreciation Expense - Equipment	6200
	Accumulated Depreciation - Office Furniture		3700
	Accumulated Depreciation - Equipment		6200
	(Depreciation expense on furniture and equipment)