Question

journalize the adjusting entry needed on december 31 for each situation. use the letters to label the journal entries. (record debits first, then credits. select the explanation on the last line of the journal entry table.)
situations
a. depreciation on the equipment for the current year is $2,300.
b. each monday, brunswick welding services pays employees for the previous week’s work. the amount of weekly payroll is $6,300 for a seven - day workweek (monday to sunday). this year, december 31 falls on thursday.
c. the beginning balance of supplies was $2,000. during the year, brunswick welding services purchased supplies for $3,300, and at december 31 the supplies on hand totaled $1,100.
d. brunswick welding services prepaid a two - full - year’s insurance on october 1 of the current year, $5,520. record insurance expense for the year ended december 31.
e. brunswick welding services had earned $3,100 of unearned revenue.
f. brunswick welding services had incurred (but not recorded) $100 of interest expense on a notes payable. the interest will not be paid until february 28.
g. brunswick welding services billed customers $5,000 for welding services performed.

Explanation:

Answer:

A. Depreciation Expense—Equipment 2300<br>Accumulated Depreciation—Equipment 2300<br>(To record depreciation on equipment)<br>B. Salaries and Wages Expense 3600<br>Salaries and Wages Payable 3600<br>(To record accrued salaries for 4 days: 6300/7 4)<br>C. Supplies Expense 4200<br>Supplies 4200<br>(2000 + 3300 - 1100 = 4200)<br>D. Insurance Expense 840<br>Prepaid Insurance 840<br>(5520 / 24 3)<br>E. Unearned Revenue 3100<br>Service Revenue 3100<br>(To record earned revenue)<br>F. Interest Expense 100<br>Interest Payable 100<br>(To record accrued interest)<br>G. Accounts Receivable 5000<br>Service Revenue 5000<br>(To record billed services)