Reference no: EM133681
Question :
a. One-third of the work related to $15,000 cash received in advance is performed this period.
b. Wages of $8,000 are earned by workers but not paid as of December 31, 2013.
c. Depreciation on the company's equipment for 2013 is $18,531.
d. The Office Supplies account had a $240 debit balance on 31st December, 2012. During 2013, $5,239 of office supplies is purchased. A physical count of supplies at 31st December, 2013, shows $487 of supplies available.
e. The Prepaid Insurance account had a $4,000 balance on 31st December, 2012. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at 31st December, 2013.
f. The company has earned but not recorded $1,050 of interest from investments in CDs for the year ended 31st December, 2013. The interest revenue may be received on January 10, 2014.
g. The company has a bank loan and has incurred but not recorded interest expense of $2,500 for the year ended 31st December, 2013. The company has to pay the interest on 2nd January, 2014.
For each of the above separate cases, purpose adjusting entries required of financial statements for the year ended date of December 31, 2013. (Suppose that prepaid expenses are initially recorded in asset accounts and that fees collected in advance of work are primarily recorded as liabilities.)