Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3

0.9

points

ROOK

Hint

1. Depreciation on the company's equipment for the year is computed to be $15,000.
2. The Prepaid Insurance account had a $5,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,250 of unexpired insurance coverage remains.
3. The Supplies account had a $270 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $319 of supplies available.
4. Two-thirds of the work related to $12,000 of cash received in advance was performed this period.
5. The Prepaid Rent account had a $5,000 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,750 of prepaid rent had expired.
6. Wage expenses of $2,000 have been incurred but are not paid as of December 31.

Prepare adjusting journal entries for the year ended December 31 for each separate situation.

The Prepaid Rent account had a $5,000 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,750 of prepaid rent had expired. Note: Enter debits before credits. Journal entry worksheet The Supplies account had a $270 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $319 of supplies available. Wote: Enter cebits before credits. Journal entry worksheet Wage expenses of $2,000 have been incurred but are not paid as of December 31. Note: Enter debits before credits. Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the compary's equipenent for the year is computed to be $15,000. b. The Prepa d insurance account had a $5,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies stiowed that $1,250 of unexpired insurance coverage remains. c. The Supples account had a $270 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the yeac. The December 31 physical count showed $319 of supples available. d. Two-thirds of the work reloted to $12,000 of cash recelved in advance was performed this period. e. The Prepoid Rent account nad a $5,000 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An annlyts of the rental agreement showed that $3,750 of prepaid rent had expired. f. Whage expenses of $2,000 have been incurted but are not paid as af December 31 . Prepare adjusting joumal entries for the year ended December 31 for each separate situation. Journal entry worksheet Two-thirds of the work related to $12,000 of cash received in advance was performed this period. Note: Enter debits before credits. Journal entry worksheet 56 Depreciation on the company's equipment for the year is computed to be $15,000. Note: Enter debits before credits. The Prepaid Insurance account had a $5,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,250 of unexpired insurance coverage remains. Nate: Enter debits before credits