Consider the following account balances and cash flow information for Eilish Inc

Question

Consider the following account balances and cash flow information for Eilish Inc. 12/31/17 $30,000 $30,000 $83,000 12/31/18 $70,000 $70,000 $25,000 Prepaid Rent Wages payable Deferred Revenue During 2018, Eilish Inc. paid $65,000 into its prepaid rent contracts, paid its employees $230,000 in wages and received $480,000 in prepayment for services to be performed. Eilish Inc. practices accrual accounting per US GAAP. Your job is to identify the adjusting entries (i.e. the non-cash revenues and expenses recognized by Eilish Inc. during 2018. Provide journal entries to record the adjustments made during 2018.

Explanation / Answer

You can reach me over comment box if you have any doubts. Please rate this answer

Date Title Debit Credit 31-Dec-18 Rent expenses ($30,000+$65,000-$70,000) $    25,000 Prepaid rent $    25,000 (To record rent expenses) 31-Dec-18 Salaries and wages expenses ($30,000+$230,000-$70,000) $ 190,000 Wages payable $ 190,000 (To record wages) 31-Dec-18 Deferred revenue ($83,000+$480,000-$25,000) $ 538,000 Service revenue $ 538,000 (To record service revenue)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.