Depreciation on the company's equipment for 2017 is computed to be $13,000. The prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $540 of unexpired insurance coverage remains. The office supplies account had a $420 debit balance on december 31, 2016; and $2,680 of office supplies were purchased during the year. The december 31, 2017, physical count showed $496 of supplies available. One-third of the work related to $15,000 of cash received in advance was performed this period. The prepaid insurance account had a $5,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,460 of coverage had expired. Wage expenses of $3,000 have been incurred but are not paid as of december 31, 2017.

Question

Business

Rudy Stone

25 December, 11:10

Depreciation on the company's equipment for 2017 is computed to be $13,000. The prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $540 of unexpired insurance coverage remains. The office supplies account had a $420 debit balance on december 31, 2016; and $2,680 of office supplies were purchased during the year. The december 31, 2017, physical count showed $496 of supplies available. One-third of the work related to $15,000 of cash received in advance was performed this period. The prepaid insurance account had a $5,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,460 of coverage had expired. Wage expenses of $3,000 have been incurred but are not paid as of december 31, 2017.

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Raegan Paul · Answer 1

Depreciation Expense ... Dr $13000

To Accumulated Depreciation ... $13000

(Being Depreciation Expense recorded)

Insurance Expense ... Dr $5460

To Prepaid Insurance ... $5460

(Being Insurance Expensed)

Supplies Expenses ... Dr $ 2604

To Supplies ... $2604

(Being Supplies Consumed Expensed)

Unearned Revenue ... Dr $5000

To Service Revnue ... $5000

(Being Revenue earned)

Insurance Expense ... Dr $4460

To Prepaid Insurance ... $ 4460

(Being insurance expensed)

Wages Expense ... Dr $3000

To Wages Payable ... $3000

(Being Wages Expense incurred)