Exercise $3-6$ Preparing adjusting entries LO P$1$

a$.$ Depreciation on the company's equipment for $2017$ is computed to be $$12,000.$

b$.$ The Prepaid Insurance account had a $$7,000$ debit balance at December $31,2017,$ before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $$820$ of unexpired insurance coverage remains.

c$.$ The Office Supplies account had a $$530$ debit balance on December $31,2016$ ; and $$2,680$ of office supplies were purchased during the year. The December $31,2017,$ physical count showed $$625$ of supplies available.

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d$.$ One$-$fourth of the work related to $$11,000$ of cash received in advance was performed this period.

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e$.$ The Prepaid Insurance account had a $$5,100$ debit balance at December $31,2017,$ before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $$4,280$ of coverage had expired.

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f$.$ Wage expenses of $$4,000$ have been incurred but are not paid as of December $31,2017.$

Prepare adjusting journal entries for the year ended $($date of$)$ December $31,2017,$ for each of these separate situations.

Journal entry worksheet

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$2$

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Depreciation on the company's equipment for $2017$ is computed to be $$12,000.$

Note: Enter debits before credits.

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$2$ of $2$

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