Prepare the December 31 adjusting entries for the following transactions with JE explanations. 1. Fees accrued but not billed, $6,300 2. The Supplies account balance on December 31, $4,750; Supplies on hand, $960 3. Wages accrued but not paid, $2,700 4. Depreciation of office equipment, $1,650 5. Rent expired during year, $10,800 Date Description Debit Credit 2.

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Business

Chase Zhang

26 May, 08:30

Prepare the December 31 adjusting entries for the following transactions with JE explanations. 1. Fees accrued but not billed, $6,300 2. The Supplies account balance on December 31, $4,750; Supplies on hand, $960 3. Wages accrued but not paid, $2,700 4. Depreciation of office equipment, $1,650 5. Rent expired during year, $10,800 Date Description Debit Credit 2.

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Jonah Odom · Answer 1

Adjusting Entries

Date Description Debit Credit

1. December 31 Fees Revenue $6,300

Account Receivable $6300

2. December 31 Supplies Expense $3,790

Supplies Inventory $3,790

3. December 31 Wages Expense $2,700

Wages Payable $2,700

4. December 31 Depreciation Expense $1,650

Accumulated Depreciation $1,650

December 31 Rent Expense $10,800

Prepaid Rent $10,800

Explanation:

Supplies Expense = $4,750 - $960 = $3,790

Rent expired term is considered as there is a prepaid rent balance of $10,800