Consider the tollowing situations for Takoma Park Welding Services: Click the ic
ID: 2393592 • Letter: C
Question
Consider the tollowing situations for Takoma Park Welding Services: Click the icon to vilew the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the joumal entries. (Recond debits first, then credits. Select the explanation on the last line of the journal entry table.) e. Takoma Park had earned $3,100 of unearned revenue. (When the cash was received, assume that a liability account was credited.) More Info Date Accounts and Explanation Debit Credit (e) Dec. 31 a. Deprecialion for the current year indludes equipment, $2,100 b. Each Monday, Takoma Park pays emplayees for the previous week's work The amount of weekly payroll is $1,400 for a seven-day workweek (Monday to Sunday). This year, December 31 fals on Thursday c. The beginning balance of Office Supplies was $2,600. During the year Takoma Park purchased office supplies for $3,400, and at December 31 the office supplies on hand totaled $1,500. f. Takoma Park had incurred (but not recorded) $160 of interest expense on a note payable. The interest will not be paid until February 28. d. Takoma Park prepaid a two full years' insurance on July 1 of the current year Date Accounts and Explanation Debit Credit S6,000. Record insurance expense for the year ended December 31 e. Takoma Park had eamed S3,100 of unearned revenue f. Takoma Park had incurred (but not recorded) S160 of interest expense on a (f) Dec. 31 note payable. The interest will not be paid until February 28 g. Takoma Park billed customers $3,000 for welding services performed. Print Done g. Takoma Park biled customers $3,000 for welding services performed. Date Accounts and Explanation Debit Credit (g) Dec 31 Choose from any list or enter any number in the input fields and then continue to the next questionExplanation / Answer
Solution :
Journal Entries Event Particulars Debit Credit a. Depreciation Expense Dr $2,100.00 To Accumulated Depreciation - Equipment $2,100.00 (To record depreciation expense) b. Salary Expense Dr $800.00 To Salary payable $800.00 (Being salary accrued for 4 days) c Office supplies Expense Dr $4,500.00 To Office supplies $4,500.00 (To record consumption of office supplies) d Insurance Expense Dr $1,500.00 To Prepaid insurance $1,500.00 (To record adjusting entry of insurance expense) e Unearned revenue Dr $3,100.00 To Service Revenue $3,100.00 (To record adjusting entry of earned revenue) f Interest expense Dr $160.00 To Interest payable $160.00 (To record interest expense accrued) g Accounts receivables Dr $3,000.00 To Service Revenue $3,000.00 (To record amount billed for service performed)