Saved Help Save & Exit Submit 2 Check my work Jaworski\'s Ski Store is completin

Question

Saved Help Save & Exit Submit 2 Check my work Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 journalized and posted. The following data are available to determine adjusting journal entries a. The unadjusted balance in Supplies was $830 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at oints December 31, 2018. A year-end count showed $120 of supplies on hand. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $3,500. The last paychecks were issued December 28, the next payments will be made on January 6, 2019. The unadjusted balance in Salaries and eBook Wages Expense was $38,000 at December 31, 2018. Hint c A portion of the store's basement is now being rented for $1,080 per month to K. Frey On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $6.480. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018 Reforences d The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2018 is $1,800, although none has been recorded yet e On December 31, 2018, the unadjusted balance in Prepaid Insurance was $2,880. This was the amount paid in year for a two-year insurance policy with coverage beginning on July 1, 2018. The unadjusted balance in Insurance Expense was $540, which was the cost of insurance from January 1 to June 30, 2018 f Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work c amounting to $730 This amount has not yet been recorded as Service Revenue Collection is expected during Ja Reauired: S Prey

Explanation / Answer

You can reach me over comment box if you have any doubts. Please rate this answer

Transaction General Journal Debit Credit a Supplies expenses ($830-$120) $     710 Supplies $     710 (To record usage of supplies) b Salaries and wages expenses $ 3,500 Salaries and wages payable $ 3,500 (To record wages due but not paid for the year) c Deferred revenue ($1,080*2months) $ 2,160 Rent revenue $ 2,160 (To record rent revenue earned) d Depreciation expenses $ 1,800 Accumulated depreciation $ 1,800 (To record depreciation expenses) e Insurance expenses ($2,880/24*6) $     720 Prepaid insurance $     720 (To record expired insurance) f Accounts receivable $     730 Service revenue $     730 (To record service revenue earned)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.