The following transactions occurred during the first year of operations for Cougar Corp. for each transaction prepare the year-end adjusting journal entry. Note: these ARE adjusting entries. a. Cougar Corp. purchased $4,300 in supplies during the year. A count at the end of the year showed that $650 of the supplies are still on hand. b. Cougar Corp. needs to record depreciation for its Vehicles. The depreciation amount is $4,100. c. Cougar Corp. owes its employees $5,700 for work performed this year. Cougar Corp. plans to pay the $5,700 in the first week of the next year. d. Cougar Corp. collected cash of $12,000 from a customer earlier in the year and recorded it properly. $9,500 of the work was performed before year-end and no revenue entries have been recorded yet for this work. e. Cougar Corp. paid $4,800 on October 1 for 4-months of rent. Since October 1, no entries have been made.

Question

Business

Javion Juarez

8 April, 05:28

The following transactions occurred during the first year of operations for Cougar Corp. for each transaction prepare the year-end adjusting journal entry. Note: these ARE adjusting entries. a. Cougar Corp. purchased $4,300 in supplies during the year. A count at the end of the year showed that $650 of the supplies are still on hand. b. Cougar Corp. needs to record depreciation for its Vehicles. The depreciation amount is $4,100. c. Cougar Corp. owes its employees $5,700 for work performed this year. Cougar Corp. plans to pay the $5,700 in the first week of the next year. d. Cougar Corp. collected cash of $12,000 from a customer earlier in the year and recorded it properly. $9,500 of the work was performed before year-end and no revenue entries have been recorded yet for this work. e. Cougar Corp. paid $4,800 on October 1 for 4-months of rent. Since October 1, no entries have been made.

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Answers (1)

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Yasmine Mosley · Answer 1

The year-end adjusting journal entry will be as presented below:

Explanation:

a. Cougar Corp. purchased $4,300 in supplies during the year. A count at the end of the year showed that $650 of the supplies are still on hand.

Details Dr ($) Cr ($)

Supplies expenses 3,650

Supplies ($4,300 - $650) 3,650

(To record supplies expenses for the year.)

b. Cougar Corp. needs to record depreciation for its Vehicles. The depreciation amount is $4,100.

Details Dr ($) Cr ($)

Depreciation 4,100

Accumulated dep. - Vehicles 4,100

(To record Vehicles' depreciation expenses for the year.)

c. Cougar Corp. owes its employees $5,700 for work performed this year. Cougar Corp. plans to pay the $5,700 in the first week of the next year.

Details Dr ($) Cr ($)

Wages expenses 5,700

Accrued wages 5,700

(To record employees' wages expenses for the year.)

d. Cougar Corp. collected cash of $12,000 from a customer earlier in the year and recorded it properly. $9,500 of the work was performed before year-end and no revenue entries have been recorded yet for this work.

Details Dr ($) Cr ($)

Cash 12,000

Revenue 9,500

Unearned revenue (12,000 - 9,500) 2,500

(To record revenue and unearned for the year.)

e. Cougar Corp. paid $4,800 on October 1 for 4-months of rent. Since October 1, no entries have been made.

Details Dr ($) Cr ($)

Rent expenses (4,800 * 3/4) 3,600

Prepayments - Rent (4,800 * 1/4) 1,200

Cash 4,800

(To record rent expenses for the year and rent prepayment.)