Make the year end, 12-31-17, general journal adjustments for Macomb Mold Company

Question

Make the year end, 12-31-17, 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 On 9-1-17 Company paid for a one yr. liability. insurance policy where coverage began 9-1-17.
Paid and Debited to the acct. Prepaid Insurance 2,850.00

+ During the year the company borrowed money from a bank.
Interest will be paid 5-15-18 but accrued interest @ 12-31-17 is 825.00

3 For the year, Depreciation on Machinery is 4,500 and on Office Furniture 1,300

4 Supplies acct. balance is now 2,150 but an inventory shows on hand 750.00

5 Company wages are 5,000 a week, paid weekly on Monday for the previous week worked.
Assume Dec 31, 2017 fell on a Wednesday

6 At 12-31-17 half of a 20,000 service was completed but can not be invoiced until March, 2018

7 On 10-1-17 we were paid 5,000 up front for a job we will finish sometime in 2018.
On 12-31-17 this job is 25% completed. The orig. collection was credited to unearned rev.

Explanation / Answer

Journal Entries :

Date Accounts Titles and description Debit $ Credit $ 12-31 Insurance expense 2850 Prepaid Insurance 2850 (insurance expense booked) Interest expense 825 Interest payable 825 Depreciation expenses 5800 Acc. Depreciation - Machinery 4500 Acc. Depreciation - Off. Furniture 1300 (being depreciation booked) Supplies expenses 1400 Supplies 1400 Wages expenses 3000 Wages payable 3000 (5000 *3/5) Accounts Receivable 10000 Services revenue 10000 (unbilled services now billed) 12-31 Unearned revenues 1250 Services revenue 1250 (5000 * 0.25)

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