E4-1 (Static) Explaining Why Adjustments Are Needed and Preparing Adjustments [LO 4-1, LO 4-2]

A list of various reasons for adjusting account balances is presented below, along with an unadjusted trial balance presented for the year ended December 31.

1. As of December 31, the equipment has been used for two full years. Approximately $1,200 of the equipments usefulness is consumed each year.
2. On December 31, the company performed $400 of services for a customer but has not yet recorded or billed the customer.
3. On December 31, the company received an e-mail from its utility company indicating the company used $250 of services during December. The company has not recorded this item because the $250 will not be paid until January 15.
4. Salaries and wages totaling $333 for the second half of December have not yet been paid or recorded.
5. No adjustment is needed for this account.

Required:

1. 1. For each account balance numbered 1-12, choose an appropriate reason from a-d that explains why that particular account balance needs to be adjusted or choose e. when no adjustment is needed.
2. 2. Prepare the adjusting journal entries required as of December 31.

I need help calculating the correct debit and credit amounts for my first journal transaction.

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare the adjusting journal entries required as of December 31. (If no entry is required for a transaction/event, select "N Journal Entry Required" in the first account field.)