Note: Answer for a has two entries 30% of (i) the $6,000 adjustment for Fees Earned has been earned but not billed, and (ii) the other 70% has been earned by performing services that were paid for in advance. ALEXIS CO.Īnalyze the statements and prepare the eight adjusting entries a through g that likely were recorded. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here). The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. The left number column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. Following are two income statements for Alexis Co. Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations. Wage expenses of $1,000 have been incurred but are not paid as of December 31, 2017.An analysis of insurance policies showed that $4,380 of coverage had expired. The Prepaid Insurance account had a $5,600 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage.One-third of the work related to $15,000 of cash received in advance was performed this period.The December 31, 2017, physical count showed $649 of supplies available. The Office Supplies account had a $550 debit balance on Decemand $2,680 of office supplies were purchased during the year.An analysis of the company’s insurance policies showed that $1,220 of unexpired insurance coverage remains. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage.Depreciation on the company’s equipment for 2017 is computed to be $11,000.Exercise 3-3 Preparing adjusting entries LO P1 Prepare the journal entry to record payment of the employees’ wages on Friday, January 4.Prepare the year-end adjusting entry for wages expenses.Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. They are paid on Fridays for work completed Monday through Friday of the same week.
Pablo Management has two part-time employees, each of whom earns $110 per day.
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