Shine Cleaning Services (SCS) has a fiscal year-end of December 31. It is the fi
ID: 2338353 • Letter: S
Question
Shine Cleaning Services (SCS) has a fiscal year-end of December 31. It is the first year of operations. As of year-end, In addition, it has not adjusted for the following transactions: SCS has the following unadjusted trial balance EEB (Clck the icon to view the unadjusted trial balance.) (Click the icon to view the transactions.) Read the reguirements Requirement a. Journalize necessary adjusting journal entries. Omit explanations. (Record debits first, then credits. Exclude explanations from any jounal entries.) (1) All of the prepaid rent expired by the end of the year i Unadjusted Trial Balance Account December 31 Shine Cleaning Services Unadjusted Trial Balance At December 31 Debit Credit Transactions Cash S400,000 162,000 109,000 2,900 180,000 Supplies Prepaid Rent Building Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Wage Expense Utlities Expense Administrative Expense .All of the prepaid rent expired by the end of the year The building was purchased early this year and has a 30-year life with no residual value. Depreciation is to be recorded for a ful year on a straight-ine basis. S 41,400 94,000 110,000 The company provided a portion of the services related to an advance collection on December 20. It performed one-half of the services to be performed in the current year Wages for the current year in the amount of S25,000 shuld be accrued and are set to be paid out to workers in January. 677,000 48,500 5,000 15,000 PrintDone Choose from any list or enter any number in the input fields and then click Check Answer. S 922,400 S 922,400 TotalsExplanation / Answer
Adjusting Entries
Date
General Journal
Debit
Credit
31-Dec
Rent Expense
$ 2,900.00
Prepaid Rent
$ 2,900.00
31-Dec
Depreciation expense-Building
$ 6,000.00
Accumulated Depreciation -Building
$ 6,000.00
31-Dec
Unearned service Revenue
$ 47,000.00*
Service Revenue
$ 47,000.00
31-Dec
Wages Expense
$ 25,000.00
Wages payable
$ 25,000.00
*Half of $94000= $47000
Working note
Straight line Method-Building
A
Cost
$ 180,000.00
B
Residual Value
$ 0.00
C=A - B
Depreciable base
$ 180,000.00
D
Life [in years]
30
E=C/D
Annual SLM depreciation
$ 6,000.00
Adjusting Entries
Date
General Journal
Debit
Credit
31-Dec
Rent Expense
$ 2,900.00
Prepaid Rent
$ 2,900.00
31-Dec
Depreciation expense-Building
$ 6,000.00
Accumulated Depreciation -Building
$ 6,000.00
31-Dec
Unearned service Revenue
$ 47,000.00*
Service Revenue
$ 47,000.00
31-Dec
Wages Expense
$ 25,000.00
Wages payable
$ 25,000.00
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