Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following indepen¬dent cases affecting Woolton Corporation. Include an explanation for each entry.
a. Details of Prepaid Insurance are shown in the account:

Woolton prepays insurance on March 31 each year. At December 31, $800 is still prepaid.
b. Woolton pays employees each Friday. The amount of the weekly payroll is $5,900 for a five-day work week. The current accounting period ends on a Tuesday.
c. Woolton has a note receivable. During the current year, Woolton has earned accrued interest revenue of $500 that it will collect next year.
d. The beginning balance of supplies was $3,100. During the year, Woolton purchased supplies costing $6,200, and at December 31 supplies on hand total $2,300.
e. Woolton is providing services for Orca Investments, and the owner of Orca paid Woolton $11,400 as the annual service fee. Woolton recorded this amount as Unearned Service Revenue. Woolton estimates that it has earned 60% of the total fee during the current year.
f. Depreciation for the current year includes Office Furniture, $3,200, and Equipment, $5,800. Make a compound entry.

Transcribed Image Text:

Prepaid Insurance Jan 1 Ba 2,300 Mar 31 3,200