Wedona Energy Consultants prepares adjusting entries monthly

Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31, 2017, the following information was available for the preparation of the January 31, 2017, month-end adjusting entries: a. Equipment purchased on November 1 of this accounting period for $14.880 is estimated to have a useful life of 2 years. After 2 years of use, it is expected that the equipment will be scrapped due to technological obsolescence b. Of the S11,600 balance in Unearned Consulting Revenue, $8,900 had been earned C. The Prepaid Rent account showed a balance of $14,100, This was paid on January 1 of this accounting period and represents six months of rent commencing on the same date d. Accrued wages at e. One month of interest had accrued at the rate of 3% per year on a $46,000 note payable f. Unrecorded and uncollected consulting revenue at month-end were $6.250 g. A $3,690 insurance policy was purchased on April 1 of the current accounting period and debited to the Prepaid Insurance account. Coverage began April 1 for 18 months h. The monthly depreciation on the office furniture was 5635. i. Repair revenues accrued at month-end totalled S3,600. i. The Store Supplies account had a balance of S820 at the beginning of January. During January, S1,800 of supplies were purchased and debited to the Store Supplies account. At month-end, a count of the supplies revealed a balance of $670. January 31 totalled $18,700. Assume Wedona Energy, uses Straight Line Method to depreciate the asset. Required: Prepare adjusting joumal entries for the month ended January 31, 2017, based on the above. (If no entry is required for a transaction event, select \"No journal entry required\" in the first account field.) View transaction list Journal entry worksheet Record the depreciation on equipment. Note: Enter debits bafore cradits Debit Credit

Solution

Journal entry :

Transaction	accounts & explanation	debit	credit
1	Depreciation expense (14880/24)	620
	Accumlated depreciation		620
	(To record depreciation)
2	Unearned revenue	8900
	Consulting revenue		8900
	(To record revenue earned)
3	Rent expense (14100/6)	2350
	Prepaid rent		2350
	(To record rent paid)
4	Wages expense	18700
	Wages payable		18700
	(To record wages payable)
5	Interest expense (46000*3%*1/12)	115
	Interest payable		115
	(To record interest payable)
6	Accured revenue	8250
	Revenue earned		8250
	(To record revenue earned)
7	Insurance expense (3690/18)	205
	Prepaid insurance		205
	(To record insurance expense)
8	Depreciation expense-Office furniture	635
	Accumlated depreciation-Office furniture		635
	(To record depreciation expense)
9	Accured revenue	3600
	Repair revenue		3600
	(To record repair revenue)
10	Supplies expense	1950
	Supplies		1950
	(To record supplies expense)