Question

Check my work 5 E4-8 Recording Typical Adjusting Journal Entries (LO 4-1, LO 4-2, LO 4-6) Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: 20:54 ok 1 . a. The unadjusted balance in Supplies was $900 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $110 of supplies on hand. b. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $4,200. The last paychecks were issued December 28; the next payments will be made on January 6, 2019 c. A portion of the store's basement is now being rented for $1150 per month to K. Frey. On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $6,900. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018 d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2018 is $2,500, although none e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $3,300. Thiš was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018 Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $800. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019. ces Required: For each situation, prepare the adjusting journal entry that Jaworski's should record at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)

Answer 1

The journal entries along with calculations are given below:

Journal Entries
Date	Particulars	Debit $	Credit $
31 December 2018	Supplies Expense A/C - Dr	790
	Supplies A/C		790
	(Supplies consumes in 2018)
	($900-$110)
31 December 2018	Wages Expense A/C -Dr	4200
	Wages Payable A/C		4200
	(Unpaid wages which will be paid on 6th January)
31 December 2018	Deferred Revenue A/C -Dr	2300
	Rent Income A/C		2300
	(Rent revenue for November and December recognized by adjusting from deferred revenue)
	[(6900/6) x 2]
31 December 2018	Depreciation A/C -Dr	2500
	Equipment A/C		2500
	(Depreciation for the year recorded)
31 December 2018	Insurance Expense A/C -Dr	825
	Prepaid Insurance A/C		825
	(Insurance expired for the year from 1st July)
	[(3300/24) x 6]
31 December 2018	Frey A/C - Dr	800
	Service Revenue A/C		800
	(Repair service provided to Frey for which payment is expected in January)

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