Question: Below are transactions for Wolverine Company during 2015 a On

Below are transactions for Wolverine Company during 2015.
a. On December 1, 2015, Wolverine receives $4,400 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to unearned revenue.
b. Wolverine purchases a one-year property insurance policy on July 1, 2015, for $10,000. The payment is debited to prepaid insurance for the entire amount.
c. Employee salaries of $3,200 for the month of December will be paid in early January 2016.
d. On November 1, 2015, the company borrows $18,750 from a bank. The loan requires principal and interest at 8% to be paid on October 30, 2016.
e. Office supplies at the beginning of 2015 total $1,300. On August 15, Wolverine purchases an additional $2,700 of office supplies, debiting the office supplies account. By the end of the year, $1,500 of office supplies remains.

Record the necessary adjusting entries at December 31, 2016, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.

View Solution:

Sale on SolutionInn
  • CreatedJuly 15, 2014
  • Files Included
Post your question