Question: Lindsey Landscaping has the following data for the December 31

Lindsey Landscaping has the following data for the December 31 adjusting entries:
a. Each Friday, Lindsey pays employees for the current week’s work. The amount of the weekly payroll is $ 6,500 for a five-day workweek. This year December 31 falls on a Wednesday. Lindsey will pay its employees on January 2.
b. On January 1 of the current year, Lindsey purchases an insurance policy that covers two years, $ 5,500.
c. The beginning balance of Office Supplies was $ 4,200. During the year, Lindsey purchased office supplies for $ 5,100, and at December 31 the office supplies on hand total $ 2,400.
d. During December, Lindsey designed a landscape plan and the client prepaid $ 9,000. Lindsey recorded this amount as Unearned Revenue. The job will take several months to complete, and Lindsey estimates that the company has earned 70% of the total revenue during the current year.
e. At December 31, Lindsey had earned $ 4,000 for landscape services completed for Tomball Appliances. Tomball has stated that they will pay Lindsey on January 10.
f. Depreciation for the current year includes Equipment, $ 3,600; and Trucks, $ 1,400.
g. Lindsey has incurred $ 200 of interest expense on a $ 500 interest payment due on January 15.

1. Journalize the adjusting entry needed on December 31, for each of the previous items affecting Lindsey Landscaping. Assume Lindsey records adjusting entries only at the end of the year.
2. Journalize the subsequent journal entries for adjusting entries a, d, and g.

Sale on SolutionInn
  • CreatedJanuary 16, 2015
  • Files Included
Post your question