Question

Laughton Landscaping has collected the following data for the December 31 adjusting entries Click the icon to view the independent cases) Read the ints Requirement 1. Journals the adjusting entry needed on December 31 for each of the tom fecting Laughton Landscaping Asune Laughton records justing entries only at the end of the yew (Records, then credits Select the explanation on the last line of the journal entry table) a. Each Friday, Laughton pays employees for the current week's work. The amount of the weekly payroll is 57.000 for a five-day workweek This year December 31 fals on Monday. Laughton will pay its employees on January Date Accounts and Explanation Debat Credit Dec 31 b. On January 1 of the current year. Laughton purchases an insurance policy that covers two years $10.000 (When the policy was purchased on January 1, assume that Laughan debited an asset account) Date Accounts and Explanation Debit Credit Dec 31 Choose from anyen nur

Answer 1

REQUIREMENT 1

	DATE	ACCOUNTS AND EXPLANATION	DEBIT	CREDIT
A	DEC 31	SALARIES AND WAGES EXPENSES	$1,400
		SALARIES AND WAGES PAYABLE		$1,400
		(SALARY OF 1 DAY ACCRUED ON DEC)
B	DEC 31	INSURANCE EXPENSES	$5,000
		PREPAID INSURANCE		$5,000
		(PREPAID INSURANCE EXPIRED FOR 1 YEAR)
C	DEC 31	SUPPLIES EXPENSES	$7,700
		SUPPLIES		$7,700
		(SUPPLIES UTILIZED DURING YEAR)
D	DEC 31	UNEARNED REVENUE	$4,800
		SERVICE REVENUE		$4,800
		(REVENUE EARNED FROM UNEARNED REVENUE)
E	DEC 31	ACCOUNT RECEIVABLES	$8,000
		SERVICE REVENUE		$8,000
		(EARNED SERVICE REVENUE)
F	DEC 31	DEPRECIATION EXPENSES-EQUIPMENT	$3,000
		DEPRECIATION EXPENSES-TRUCK	$2,000
		TO ACCUMULATED DEPRECIATION-EQUIPMENT		$3,000
		TO ACCUMULATED DEPRECIATION-TRUCK		$2,000
		(DEPRECIATION CAHREGED ON ASSETS)
G	DEC 31	INTEREST EXPENSES	$450
		INTEREST PAYABLE		$450
		(INTEREST ACCRUED)

W/N:

A. 7,000/5 = 1,400 PER DAY SALARY ACCRUED IN THIS CASE MONDAY SALARY ACCRUED ON DEC 31 SO 1,400 WILL BE SHOWN AS LIABILITY.

B.PREPAID INSURANCE HAS BEEN PAID HAS BEEN FOR 2 YEARS SO INSURANCE EXPENSES FOR 1 YAER SHOULD BE RECOGNIZED ON DEC 31 = 10,000/2 = 5,000

C.SUPPLIES USED = 4,000 +5,700 - 2,000

=7,700

D.REVENUE EARNED = 8,000 *60% = 4,800

E

REQUIREMENT 2

	DATE	ACCOUNTS AND EXPLANATION	DEBIT	CREDIT
A	JAN 4	SALARIES AND WAGES PAYABLE	$1,400
		SALARIES AND WAGES EXPENSES	$5,600
		TO CASH		$7,000
		(SALARY PAID TO EMPLOYEES)
D		UNEARNED REVENUE (40% OF 8,000)	$3,200
		SERVICE REVENUE		$3,200
		(REVENUE RECOGNIZED WHEN EARNED)
G	JAN 15	INTEREST EXPENSES	$200
		INTEREST PAYABLE	$450
		CASH		$650
		(CASH PAYMENT OF INTEREST)