Refer to the information in P3-41. Prepare journal entries for parts \(a\) and \(b\).

Q3-41

The following selected accounts appear in Sloan Company's unadjusted trial balance at December 31, the end of its fiscal year (all accounts have normal balances).

Required

a. Prepare Sloan Company's accounting adjustments at December 31, using the financial statement effects template and the following additional information.
1. Prepaid advertising at December 31 is \(\$ 800\).
2. Unpaid wages earned by employees in December are \(\$ 2,600\).
3. Prepaid insurance at December 31 is \(\$ 2,280\).
4. Unearned service fees at December 31 are \(\$ 3,000\).
5. Rent revenue of \(\$ 1,000\) owed by a tenant is not recorded at December 31 .

b. Prepare entries on January 4, of the following year, using the financial statement effects template to record 1. Payment of \(\$ 4,800\) cash in wages.
2. Cash receipt from the tenant of the \(\$ 1,000\) rent revenue.

Transcribed Image Text:

Prepaid Advertising Wages Expense... Prepaid Insurance $ 1,200 43,800 3,420 Unearned Service Fees Service Fees Earned.. Rental Income.... $ 5,400 87,000 4,900