Question

Journalize the adjusting entries needed at December 31; the end of the current accounting year, for each of the following independent cases affecting Waterfall Heights, Inc. No other adjusting entries have been made for the year.
a. Prior to making the adjusting entry on December 31, the balance in Prepaid Insurance is $3,000. Waterfall Heights, Inc. pays liability insurance each year on September 30.
b. Waterfall Heights, Inc. pays employees each Friday. The amount of the weekly payroll is $19,000 for a five-day workweek. December 31, the fiscal year-end, is a Thursday.
c. Waterfall Heights, Inc. received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $875 and will be collected next year.
d. The beginning balance of Supplies was $1,600. During the year, $4,400 of supplies were purchased. At December 31, the supplies on hand total $2,500.
e. During the year, Waterfall Heights, Inc. received $14,500 in advance for services to be provided at a later date. As of December 31, Waterfall Heights, Inc. earned $5,100 of the total fees received during the current year.
f. Depreciation for the current year includes Vehicles, $2,170, and Equipment, $1,300.


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  • CreatedJuly 08, 2015
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