103) tice Gradebook ORION ment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCRtrN PRIN

Question

103) tice Gradebook ORION ment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCRtrN PRINTER VERSION ·BACK Devin Wolf Company has the following balances in selected accounts on December 31, 2017 Accounts Receivable Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue 8,000 10,100 2,220 2,900 32,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. Devin Wolf Company borrowed $10,100 by signing a 9%, one-year note on September 1, 2017 2. A count of supplies on December 31, 2017, indicates that supplies of $980 are on hand. 3. Depreciation on the equipment for 2017 is $1,500. 4. Devin Wolf Company paid $2,220 for 12 months of insurance coverage on June 1, 2017. S. On December 1, 2017, Devin Woilf collected $32,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. The company had performed 1/4 of the services by December 31. 6. Devin Wolf performed consulting services for a client in December 2017. The client will be billed $3,600. 7. Devin Wolf Company pays its employees total salaries of $5,200 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2017, Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent Pelic I Version 4.24.5.1 MacBook Air

Explanation / Answer

Interest Expense Dr. 303 Interest Payable                   303 Supplies Expense Dr. 1920 Supplies                                       1920 Depreciation Expense Dr. 1500 Accumulated Depreciation-Equipment         1500 Insurance Expense Dr. 1295 Prepaid Insurance                      1295 Unearned Service Revenue Dr. 8000 Service Revenue                                          8000 Accounts Receivable Dr. 3600 Sales Revenue                                3600 Salaries & Wages Expenses Dr. 3120 Salaries & Wages Payable                      3120 Explanation: 1.=10100*9%*4/12 = 303 2.2900-980 = 1920 4.2220*7/12= 1295 5.32000/4 = 8000 6.5200/5*3 = 3120 Montee company Income Statemen Revenue Service Revenue (6600+800) 7400 Expenses Salaries and Wages (2500+500) 3000 Supplies (1000-150) 850 Utilities 400 Prepaid Insurance 500 Depriciation of Euipment 250 Total Expenses 5000 Net Income 2400

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