All of the transactions of Startish Tattoo Parlor Inc. for the year have been jo
ID: 2513115 • Letter: A
Question
All of the transactions of Startish Tattoo Parlor Inc. for the year have been jounalized and posted. The following information has been gathered for the adjustment process as of December 31, 2016: A) The Supplies account shows a balance of $1,020. A count of supplies revealed $450 on hand. B) The $1,380 premium relating to a one-year insurance policy was paid on December 1, 2016 C) The company's equipment, which was purchased last year, depreciates at a rate of $900 per year D) On September 30, 2016, a customer paid $9,400 in advance for services, or this amount, 30% was E) Employees are paid $1,900 on Fridays for the 5-day work week, which ends on that Friday. However, F) Required earned as of 12/31/16 December 31, 2016 falls on a Thursday. the related revenue has not been recorded The company has completed $560 of work for customers, the customers have not yet been billed and a. Prepare the required adjusting entries required at December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record adjusting entry given that the supplies account shows a balance of $1,020. A count of supplies revealed $450 on hand at 12/31/16. Note: Enter dobits before credits Type here to search F2 F4 FS F6 F7 F8 F9 10 F11FExplanation / Answer
A Supplies expense 570 =1020-450 Supplies 570 B Insurance expense 115 =1380/12 Prepaid insurance 115 C Depreciation expense 900 Accumulated depreciation-Equipment 900 D Unearned service revenue 2820 =9400*30% Service revenue 2820 E Salaries and wages expense 1520 =1900/5*4 Salaries and wages payable 1520 F Accounts Receivable 560 Service revenue 560