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28 July, 12:39

The trial balance of Wikki Cleaners at December 31, 2012, the end of the current fiscal year, is as follows:

Wikki Cleaners Trial Balance December 31, 2012

Cash $13,200

Cleaning Supplies 22,000

Prepaid Insurance 5,400

Equipment 206,000

Accumulated Depreciation $74,100

Accounts Payable 8,500

Common Stock 60,000

Retained Earnings 31,200

Dividends 27,000

Revenue 171,560

Rent Expense 28,500

Wages Expense 39,720

Utilities Expense 2,130

Miscellaneous Expense 1,410$

345,360 $345,360

Information for the adjusting entries is as follows:

a. Cleaning supplies on hand on December 31, 2012, $18,750.

b. Insurance premiums expired during the year, $1,800.

c. Depreciation on equipment during the year, $21,600.

d. Wages accrued but not paid at December 31, 2012, $1,830.

Required:

Journalize the the entries.

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Answers (1)
  1. 28 July, 13:07
    0
    a.

    Inventory $18,750 (debit)

    Supplies $18,750 (credit)

    b.

    Insurance Expense $1,800 (debit)

    Insurance Prepaid $1,800 (credit)

    c.

    Depreciation : Equipment $21,600 (debit)

    Accumulated Depreciation : Equipment $21,600 (credit)

    d.

    Wages Expense $1,830 (debit)

    Wages Payable$1,830 (credit)

    Explanation:

    a.

    Recognize Inventory and de-recognize Supplies

    b.

    Recognize Insurance Expense and de-recognize insurance prepaid asset

    c.

    Recognize the depreciation expense

    d.

    Recognize the Wages expense and de-recognize the Wages payable liability.
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