Depreciation on the company's equipment for the year is computed to be $18,000. The prepaid insurance account had a $6,000 debit balance at december 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. The office supplies account had a $700 debit balance at the beginning of december; and $3,480 of office supplies were purchased in december. The december 31 physical count showed $300 of supplies available. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. The prepaid rent account had a $6,800 debit balance at december 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $5,800 of rental coverage had expired. Wage expenses of $3,200 have been incurred but are not paid as of december 31.

Question

Business

Gisselle Bridges

27 December, 10:01

Depreciation on the company's equipment for the year is computed to be $18,000. The prepaid insurance account had a $6,000 debit balance at december 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. The office supplies account had a $700 debit balance at the beginning of december; and $3,480 of office supplies were purchased in december. The december 31 physical count showed $300 of supplies available. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. The prepaid rent account had a $6,800 debit balance at december 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $5,800 of rental coverage had expired. Wage expenses of $3,200 have been incurred but are not paid as of december 31.

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Demetrius Choi · Answer 1

Depreciation Expense ... $18000

To Accumulated Depreciation ... $18000

(Being depreciation expense accounted)

Insurance Expense ... $4900

To Prepaid Insurance ... $4900

(Being Insurance Expensed)

Supplies Expense ... $3880

To Supplies ... $3880

(Being Supplies Consumed Expensed)

Unearned Service Revenue ... $10000

To Service Revenue ... $10000

(Being Unearned Service Revenue Recognised)

Rent Expense ... $5800

To Prepaid Rent ... $5800

(Being rent expired Expensed off)

Wages Expense ... $3200

To Wages Payable ... $3200

(Being Wages payable expensed).