Question

For each of the transactions, indicate the amount and direction of effects of the adjusting journal entry on the elements of the accounting equation. Using the following format, indicate + for increase, - for decrease. Include account names using the format shown for the following sample.

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2015. The transactions during 2015 have been journalized and posted. The following data are available to determine adjusting journal entries a. The unadjusted balance in Supplies was $1,210 at December 31, 2015. The unadjusted balance in Supplies Expense was $0 at December 31, 2015. A year-end count showed $280 of supplies on hand. b. Weges eaned by employees during December 2015, unpald and unrecorded at December 31, 2015, amounted to $5,500. The last paychecks were issued December 28; the next payments will be made on January 6, 2016. The unadjusted balance in Salaries and Wages Expense was $58,000 at December 31, 2015. c. A portion of the store's basement is now being rented for $2,900 per month to K. Frey. On November 1, 2015, the store collected six months' rent in advance from Frey in the amount of $17,400. It was credited in full to Unearned Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2015. d. The store purchased dellvery equipment at the beginning of the year. The estimated depreciation for 2015 is $3,800, although none has been recorded yet. e. On December 31, 2015, the unadjusted belance in Prepaid Insurance was $3,720. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2015. The unadjusted balance in Insurance Expense was $780, which was the cost of insurance from January 1 to June 30, 2015. f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2015, Frey had not paid for work completed amounting to $930. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2016. Required: For each of the transactions, indicate the amount and direction of effects of the adjusting journal entry on the elements of the accounting equation. Using the following format, indicate for increase. - for decrease. Include account names using the format shown for the following semple. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Answer is not complete. Transaction Stockholder's Equity Liabilites Assets Supplies Supplies Expense Salaries and Wages Expense (030) (930) 5.500 Salaries and Wagos Payable Prepaid Rent (5,500) b 17 400 la800) 17.400 amed Revenue Depreciation Expense Insurance Expense Accumulated Depreciation-Equipment Prepaid Insurance 3.800 d (600) (600) 930 930 Cash Accounts Receivable

Answer 1

Transaction	Assets		=	Liabilities		+	Stockholder's equity
a.	Supplies (1210-280)	-$930.00					Supplies Expense	-$930.00
b.				Salaries & Wages Payable	$5,500.00		Salaries and Wages Expense	-$5,500.00
c.				Unearned Revenue (17600/6*2)	-$5,800.00		Rent Revenue	$5,800.00
d	Accumulated Depreciation - Equipment	-$3,800.00					Depreciation Expense	-$3,800.00
e.	Prepaid Insurance (3720/24*6)	-$930.00					Insurance expenses	-$930.00
f.	Account Receivable	$930.00					Service Revenue	$930.00