Make the year end, 12-31-15, general journal adjustments for Macomb Mold Company

Question

Make the year end, 12-31-15, general journal adjustments for Macomb Mold Company. Company only prepares adjustments and financial statements once a year on 12-31. Here is this information to make the adjustments: 1 Supplies acct. balance is now 3,110 but an inventory shows on hand………….. 420.00 2 Company wages are 9,000 a week, paid weekly on Monday for the previous week worked. Assume Dec 31, 2015 falls on a ……………………………………………………………………. Friday 3 For the year, Depreciation on Machinery is 3,200 and on Office Furniture 2,000 4 At 12-31-15 20% of a 15,000 service was completed but can not be invoiced until March, 2016. 5 On 3-1-15 Company paid for a one yr. liab. insurance policy where coverage begins 3-1-15. Paid and Debited to the acct. Prepaid Insurance ……………………………………… 3,150.00 6 On 12-1-15 we were paid 12,000 up front for a job we will finish sometime in 2016. On 12-31-15 this job is 45% completed. The orig. collection was credited to unearned rev. 7 During the year the company borrowed money from a bank. Interest will be paid 8-06-16 but accrued int. @ 12-31-15 is ………………………….. 275.00

Explanation / Answer

Adjustment Journal Entries:

Date Accounts Titles and explanation Debit $ Credit $ Dec 31, 2015 Supplies Expenses 2690 Supplies (Assets) 2690 Wages Expense 6429 Wages Payable 6429 (Weekly wages i.e. 9000 * 5 / 7 = $6429) Depreciation - Machinery 3200 Depreciation - Furniture 2000 Accumulated Depreciation - Machinery 3200 Accumulated Depreciation - Furniture 2000 Accounts Receivables 3000 Revenue 3000 Insurance Expense 2625 Prepaid Insurance 2625 (3150 * 10 /12) Unearned Revenue 5400 Revenue 5400 (12000 * 45%) Interest Expense 275 Interest Payable 275

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