a. Each Friday, Loco pays employees for the current week's work. The amount of the weekly...

  

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a. Each Friday, Loco pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year December 31 falls on a Thursday. Loco will pay its employees on January 1. b. On January 1 of the current year, Loco purchases an insurance policy that covers two years, $4,000. c. The beginning balance of Office Supplies was $3,400. During the year, Loco purchased office supplies for $5,800, and at December 31 the office supplies on hand total $3,000. d. During December, Loco designed a landscape plan and the client prepaid $4,000. Loco recorded this amount as Unearned Revenue. The job will take several months to complete, and Loco estimates that the company has earned 50% of the total revenue during the current year. At December 31, Loco had earned $5,000 for landscape services completed for Antique Attic Appliances. Antique Attic has stated that it will pay Loco on January 10. e. Depreciation for the current year includes Equipment, $3,900; and Trucks, $2,200. Loco has incurred $700 of interest expense on a $1,150 interest payment due on January 15. f. g. Loco Landscaping has collected the following data for the December 31 adjusting entries: i (Click the icon to view the independent cases.) Read the requirements. Requirement 1. Journalize the adjusting entry needed on December 31 for each of the items affecting Loco Landscaping. Assume Loco records adjusting entries only at the end of the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Each Friday, Loco pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year December 31 falls on a Thursday. Loco will pay its employees on January 1. Accounts and Explanation Date Dec. 31 ▼ Debit Credit a. Each Friday, Loco pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year December 31 falls on a Thursday. Loco will pay its employees on January 1. b. On January 1 of the current year, Loco purchases an insurance policy that covers two years, $4,000. c. The beginning balance of Office Supplies was $3,400. During the year, Loco purchased office supplies for $5,800, and at December 31 the office supplies on hand total $3,000. d. During December, Loco designed a landscape plan and the client prepaid $4,000. Loco recorded this amount as Unearned Revenue. The job will take several months to complete, and Loco estimates that the company has earned 50% of the total revenue during the current year. At December 31, Loco had earned $5,000 for landscape services completed for Antique Attic Appliances. Antique Attic has stated that it will pay Loco on January 10. e. Depreciation for the current year includes Equipment, $3,900; and Trucks, $2,200. Loco has incurred $700 of interest expense on a $1,150 interest payment due on January 15. f. g. Loco Landscaping has collected the following data for the December 31 adjusting entries: i (Click the icon to view the independent cases.) Read the requirements. Requirement 1. Journalize the adjusting entry needed on December 31 for each of the items affecting Loco Landscaping. Assume Loco records adjusting entries only at the end of the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Each Friday, Loco pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year December 31 falls on a Thursday. Loco will pay its employees on January 1. Accounts and Explanation Date Dec. 31 ▼ Debit Credit

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