142.REM Consulting is completing the accounting information processing at the end of the fiscal year, December31. The following trial balances are available.
?AccountsUnadjusted
Trial BalanceAdjusted
Trial Balance
DebitCreditDebitCredit
Cash13,00013,000
Accounts Receivable1,5001,800
Prepaid Insurance600200
Supplies3,8003,000
Machines30,00030,000
Accumulated Depreciation—Machines12,00017,500
Wages Payable900
Unearned Revenue6,7006,500
Common Stock24,00024,000
Dividends4,8004,800
Service Revenue25,00025,500
Wages Expense14,00014,900
Insurance Expense400
Supplies Expense800
Depreciation Expense5,500
67,70067,70074,40074,400
?
? (a) Reconstruct the adjusting entries and give a brief explanation of each.
(b) What is the amount of net income?
143.Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for thefive-day workweek. Prepare the adjusting entry on December 31 assuming the year ends on Thursday.
DateDescriptionPost. Ref.DebitCredit
144.A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December 31 would be:
Date
Description
Post. Ref.
Debit
Credit
145.Depreciation on an office building is $2,800. The adjusting entry on December 31 would be
Date
Description
Post. Ref.
Debit
Credit