Question

The following data relate to the accounts of Sunland Company. a. b. c. Unpaid salaries and wages at year end amount to $720. Sunland Company owns bonds of another corporation that pay annual interest of $1,880. These bonds were purchased on April 1, 2020, and the next interest payment will be received on April 1, 2021. A two-year insurance policy was purchased on June 1, 2020. The $3,360 insurance premium was paid on that date and was debited to Prepaid Insurance. Service Revenue was credited for $1,680 on June 1, 2020. The amount represents a one-year advance payment for services to be performed by Edminston Company through May 31, 2021. The Supplies account shows a balance of $2,000 on December 31, 2020. A physical count of the supplies on hand at this date reveals a total of $1,000 available. d. e. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Credit $ 720 Bi 8 1410 We Account Tidles and Explanadiona Debit a. Salaries and Wages expenses § 730 Salousies payable (To trecord the accqued Salaries) Interest receivable $ 1410 Interest Revenue ($1880 X 9112) (To record the indenerf revenue from April to december) c. Insurance expense - $ 980 Prepaid insurance ( 3360'x 724) 24.-241 .24 month To record the acerved insurance expense) $ 700 & 980 di Service Revenue Unearned Service (81680X 512) Cto record the nearened evenve $ 700 Service revenue ) e. 91000 Supplies expenses Supplies If 2000 - $1000) CTo record the supplies ) 81000 expenses