Prepare adjusting entries for the month of December 31, 2015 for the following t
ID: 2420751 • Letter: P
Question
Prepare adjusting entries for the month of December 31, 2015 for the following transactions of Johnson Services, Inc. Please skip a line between entries. Omit explanations. A partial chart of accounts is provided below.
Cash Unearned Revenue
Accounts Receivable Common Stock
Office Supplies Dividends
Prepaid Insurance Service Revenue
Equipment Wages Expense
Accumulated Depreciation - Equipment Advertising Expense
Accounts Payable Depreciation Expense
Wages Payable Insurance Expense
Interest Payable Supplies Expense
a. At the end of December $500 in wages had been earned by the employees but not yet paid.
b. Depreciation on equipment is $1,200 for the month of December.
c. The Office Supplies account had a balance of $500 prior to adjustment. At the end of the
December supplies worth $400 had been used.
d. Prepaid insurance had a $1,000 balance prior to adjustment. By the end of December, $400 was unexpired.
e. At the end of December Johnson had performed but not billed customers for services of $950.
Date
Account Titles
Debit
Credit
Date
Account Titles
Debit
Credit
Explanation / Answer
Date Account titles Debit Credit a. Dec-31,2015 Wages Expense 500 Wages Payable 500 b Dec-31,2015 Depreciation Expense 1200 Accumulated Depreciation - Equipment 1200 c Dec-31,2015 Supplies Expense 400 Office Supplies 400 d Dec-31,2015 Insurance Expense 600 Prepaid Insurance 600 e Dec-31,2015 Accounts Receivable 950 Service Revenue 950