rroblem 4 (1S points) aworski\'s Ski Stoe is completing the accounting process f

Question

rroblem 4 (1S points) aworski's Ski Stoe is completing the accounting process for its frst year eaded December 31.2015 The transasctioms during 2015 have been journalined and posted. The follewing date are available to determine adjusting joursal entries a. The unadjusted balanse in Suicsws $760 t December 31.2015. The unausted belance in Expense was S0 at December 31, 2015, A year-end count showed $100 of supplies on hand ages earned by employees during December 2015, unpaid and unrecoeded at December 31, 2015 amounted to $2,800. The last on Jaary 6, 2016. The unadjusted balance in Salaries and Wages Expense was $31,000 at December 31, 201 C. A poetion of the store's basement is now being rented for $1,010 per moeth to K. Frey. On November 1 215, the store collected six months" rent in advance from Frey in the amount of $6,060, lt was credited in full to Uneaned Revenue when collected. The unadjusted balance in Reat Revenue was S0 at December 31, 2015 d. On December 31, 2015, the unadjustod balance in Prepaid Insurance was $2,460. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning om July 1, 2015. The unadjusted belance in Iesurance Expense was $330, which was the cost of inourance from January 1 to June 30, 2015. e. Jaworski's store did some ski repair work for Frey. Atthe end of December 31, 2015, Frey h? not paid for work completed amounting to 5660. This amount has not yet boen recorded as Service Revenue. Collection is expected during January 2016 Required For each situation, prepare the adjusting journal entry that Jaworski's should record at December 31 2015. Use proper journal entry format Debit Credi

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. a. 31-Dec-15 Supplies Expense       660.00 $760 - $100    Supplies       660.00 (To record the supplies expenses) b. 31-Dec-15 Salaries & Wages Expense    2,800.00    Salaries & Wages Payable    2,800.00 (To record the salaries & wages expenses due) c. 31-Dec-15 Unearned Revenue    2,020.00 $1,010 X 2 Months    Rent Revenue    2,020.00 (To record the rent revenue earned for Nov. & Dec) d. 31-Dec-15 Insurance Expense       615.00 $2,460 X 6/24    Prepaid Insurance       615.00 (To record the insurance expense from Jul to Dec.) e. 31-Dec-15 Accounts Receivable       660.00    Service Revenue       660.00 (To record the service revenue)

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