Answered

Find solutions to your problems with the help of IDNLearn.com's expert community. Our experts are available to provide in-depth and trustworthy answers to any questions you may have.

Journalize the six December 31 adjusting entries for Cole Designs that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. Refer to the Chart of Accounts for exact wording of account titles. Journalize each adjustment as a separate entry.
Cole Designs
Income Statement
For the Year Ended December 31, 2018
Fees earned $77,000.00
Expenses:
Wages expense $47,200.00
Supplies expense 3,515.00
Insurance expense 2,900.00
Depreciation expense 2,000.00
Total expenses 55,615.00
Net income $21,385.00
CHART OF ACCOUNTS
Cole Designs
General Ledger
ASSETS
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation-Equipment
LIABILITIES
Wages Payable
Unearned Fees
EQUITY
Ann Cole, Capital
Ann Cole, Drawing
REVENUE
Fees Earned
EXPENSES
Wages Expense
Supplies Expense
Insurance Expense
Depreciation Expense

Sagot :

Answer:

1- Accounts Receivable (Dr.) $500

Fees Earned (Cr.) $500

2- Unearned Fees (Dr.) $4,500

Accounts Receivable (Cr.) $4,500

3- Insurance Expense (Dr.) $1,600

Prepaid Insurance (Cr.) $1,600

4- Depreciation Expense (Dr.) $1,700

Accumulated Depreciation (Cr.) $ 1,700

5- Office Supplies Expense (Dr.) $3,530

Office Supplies (Cr.) $3,530

6- Wages Expense (Dr.) $1,850

Wages Payable (Cr.) $1,850

Explanation:

Adjusting entries are prepared at the month end to adjust the transaction which occur after the recording or if there is any change in already recorded transaction. The liabilities and assets accounts are adjusted at the month end to reflect true expense or liability.

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.