Hakik Enterprises offers rug cleaning services to business clients. Below are th
ID: 2374573 • Letter: H
Question
Hakik Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31, 2010. REQUIRED: Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Adjustments:
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Please record one month%u2019s depreciation.
b) Accrued Wages $2.
c) Unused supplies on hand $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.
Hakik Enterprises
End of Period Spreadsheet (Work Sheet)
For the Year Ended July 31, 2010
Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
36
Prepaid Insurance
12
Fees Receivable
56
Supplies
12
Equipment
60
Accum. Deprec. - Equip
12
Unearned Revenue
20
Accounts Payable
32
Wages Payable
Ramon Hakik, Capital
84
Ramon Hakik, Drawings
4
Service Revenue
80
Advertising Expense
28
Wage Expense
20
Insurance Expense
Supplies Expense
Depreciation Expense
Totals
228
228
Hakik Enterprises
End of Period Spreadsheet (Work Sheet)
For the Year Ended July 31, 2010
Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
36
Prepaid Insurance
12
Fees Receivable
56
Supplies
12
Equipment
60
Accum. Deprec. - Equip
12
Unearned Revenue
20
Accounts Payable
32
Wages Payable
Ramon Hakik, Capital
84
Ramon Hakik, Drawings
4
Service Revenue
80
Advertising Expense
28
Wage Expense
20
Insurance Expense
Supplies Expense
Depreciation Expense
Totals
228
228
Explanation / Answer
Depreciation=60/5=12
Depreciation Debit 1
Equipment 1
(one month depreciation 12/12=1)
wage expense Debit 2
accrued wages 2
unused supply Debit 8
profit and loss 8
cash 15
profit and loss 15
prepaid insurance 9
insurance 9
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