C D ezto mheducationcommtpx a Onetherd of the work retaned t

C D ezto mheducation.comm.tpx a One-therd of the work retaned to S15,000 cash receved in adance s perloemed ths penod b. Wages of $8,000 ane eamed by workers but not paid as of December 31, 2016 e. Depreciation on the company\'s equipment for 2016 is $18,000 d. The Office Supplies account had a $240 debr balance on December 31, 2015 Duing 2016 $5 200 of ofice suppies are parchased A pnysical count of supplies at December 31 2016 shows $440 of suppies avaiable e. The Prepaid Insurance account had a $4 000 balance on December 31, 2015 An analyss of insurance poices shows tha $1.200 of unexpred insurance benetts reman at Decemcer 31 t. The company has eamed ibut not recorded) $1,050 of interest from investments n CDs lor the year ended Decemser 31, 2016 The interest revenue wit be received on January 10 2017 2016 g. The company nas a bank soan and has incumed (but not recceded) interest expense ot $2.500 for the year ended December 31, 2016 The company must pay the nlerest an Janan 2 201 For each of the above se arate cases. prepare a?rstn enes requred for fr anctal statements ror the year ended (date on December 31, 2016 recorded in asset accoums and that lees colected in avance of work are intaly recorded as sacenies) Assume tat propis erpenses are ntury ew transaction s Journal entry worksheet One third of the work related to s15,000 cash received in advance is performed this period. ioba: Erter debes belare credts Debit Credi Transaction

Solution

Adjusting entries: Accounts title and explanations Debit $ Credit $ a. Unearned revenue Account Dr. 5000       Service revenue Account 5000 b. Wages expense Account Ddr. 8000        Wages payable Account 8000 c. Depreciation expense Account Dr. 18000      Accumulated depreciation-Equipment 18000 d. Supplies expense Aaccount Dr. 5000     office supplies account 5000 e. Insurance expense account Dr. 2800     prepaid insurance account 2800 f. Interest receivable Account Dr. 1050      Interest revenue account 1050 g. Interest expense Account Dr. 2500       Interest payable account 2500