The ledger of Wildhorse Co. on July 31, 2017, includes the selected accounts bel
ID: 2335099 • Letter: T
Question
The ledger of Wildhorse Co. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation-Buildings Unearned Service Revenue $18,000 22,000 5,600 250,000 120,000 10,200 An analysis of the company's accounts shows the following 1. The investment in the notes receivable earns interest at a rate of 12% per year. 2. Supplies on hand at the end of the month totaled $15,400. 3. The balance in Prepaid Rent represents 4 months of rent costs. Employees were owed $3,500 related to unpaid salaries and wages. . Depreciation on buildings is $4,560 per year 6. During the month, the company satisfied obligations worth $4,800 related to the Unearned Services Revenue. 7. Unpaid maintenance and repairs costs were $2,25o 4. Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthy (rr no entryis required, Select-Entry-for the account titles and entero automatically indented when the amount is entered. Do not indent manually.)Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Debit Credit Interest receivable Dr 180.00 To interest revenue 180.00 (18,000*12%*1/12) Supplies expense DR 6,600.00 To Supplies 6,600.00 (22,000 - 15,400) Rent Expense Dr 1,400.00 To Prepaid rent 1,400.00 (5600/4) Salaries and wages expense DR 3,500.00 To Salaries and wages payable 3,500.00 Depreciation Expense Dr 4,560.00 To Accumulated depreciation 4,560.00 Unearned service revenue Dr 4,800.00 To Service revenue 4,800.00 Maintenance and repaur costs Dr 2,250.00 To Expenses payable 2,250.00
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