blems Group A BA Journalizing adjusting entries and subseque

blems Group A BA Journalizing adjusting entries and subsequent journal entries Laughter Landscaping has collected the following data for the December 31 adjus entries: Each Friday, Laughter pays employees for the current week\'s work. The amou of the weekly payroll is $8,000 for a five-day workweek. This year, December falls on a Tuesday. Laughter will pay its employees on January 3 a. b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000 e. The beginning balance of Office Supplies was $4,300. During the year, Laughter office supplies for $5,600, and at December 31 the office supplies on hand total $1,500 d. During December, Laughter designed a landscape plan and the client prepaid $6,500. Laughter recorded this amount as Uncarned Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 40% of the total revenue dunng the current year. e. At December 31, Laughter had earned $3,000 for landscape services completed for and Trucks, $2,200 g Laughter has incurred $250 of interest expense on a $550 interest payment due on Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10 Depreciation for the current year includes Equipment, $3,000 January 15.

Solution

S.NO PARTICULARS DEBIT ($) CREDIT ($) a) Salary Expenses 3200 To Salary payable 3200 b) Insurance Expense 8000 To Prepaid Insurance 8000 c) Office supplies 5600 To Cash 5600 Supplies Expenses 8400 To Office supplies 8400 d) Unearned Revenue 2600 To serive revenue 2600 e) Accounts Receivables 3000 To Service Revenue 3000 f) Depreciation 5200 To Equipments 3000 To Trucks 2200