3-2 - a. Depreciation on the company’s equipment for 2009...

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Page 2 of 14 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview 2. award: 1 out of 1 point 3. award: 1 out of 1 point Prepaid Insurance 3,180 C Unearned Professional Fees 19,250 Professional Fees Earned 19,250 A Interest Receivable 3,300 Interest Revenue 3,300 D Depreciation Expense 38,217 Accumulated Depreciation 38,217 E Salaries Expense 13,280 Salaries Payable 13,280 [The following information applies to the questions displayed below.] Prepare adjusting journal entries for the year ended (date of) December 31, 2009, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also assume that fees collected in advance of work are initially recorded as liabilities. (Round your answers to the nearest dollar amount.Omit the "$" sign in your response.)
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Unformatted text preview: a. Depreciation on the company’s equipment for 2009 is computed to be $16,000. General Journal Debit Credit Depreciation Expense-Equipment 16,000 Accumulated Depreciation-Equipment 16,000 Worksheet Learning Objective: 03-P1 a. Depreciation on the company’s equipment for 2009 is computed to be $16,000. General Journal Debit Credit Depreciation Expense-Equipment 16,000 Accumulated Depreciation-Equipment 16,000 b. The Prepaid Insurance account had a $6,000 debit balance at December 31, 2009, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $640 of unexpired insurance coverage remains. General Journal Debit Credit Insurance Expense 5,360 Prepaid Insurance 5,360...
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.

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