1. wages of $13,000 are earned by workers but not paid as of december 31.
2. depreciation on the company’s equipment for the year is $11,560.
3. the office supplies account had a $490 debit balance at the beginning of the year. during the year, $4,582 of office supplies are purchased. a physical count of supplies at december 31 shows $508 of supplies available.
4. the prepaid insurance account had a $5,000 balance at the beginning of the year. an analysis of insurance policies shows that $3,200 of unexpired insurance benefits remain at december 31.
5. the company has earned (but not recorded) $950 of interest revenue for the year ended december 31. the interest payment will be received 10 days after the year-end on january 10.
6. the company has a bank loan and has incurred (but not recorded) interest expense of $3,000 for the year ended december 31. the company will pay the interest five days after the year-end on january 5.

for each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) december 31.

1. Wages of $13,000 are earned by workers but not paid as of December 31.

Account                            Debit            Credit

Wages Expense              $13,000

Wages Payable                                     $13,000

2. Depreciation on the company’s equipment for the year is $11,560.

Account                                       Debit            Credit

Depreciation Expense              $11,560

Accumulated Depreciation                             $11,560

3. The Office Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,582 of office supplies are purchased. A physical count of supplies at December 31 shows $508 of supplies available.

Account                                     Debit             Credit

Supplies Expense          $4,582

Cash                                                                $4,582

Supplies Expense                     $4,564

Supplies                                                          $4,564

4. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,200 of unexpired insurance benefits remain at December 31.

$1,800 worth of insurance have been spent, out of the initial $5,000 prepaid insurance balance. ($5,000 - $1,800 = $3,200)

Account                                    Debit              Credit

Prepaid Insurance                                          $1,800

Insurance Expense                 $1,800

5. The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.

Account                                    Debit                Credit

Interest Receivable                 $950

Interest Revenue                                              $950

6. The company has a bank loan and has incurred (but not recorded) interest expense of $3,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

Account                                    Debit                Credit

Interest Expense                     $3,000

Interest Payable                                                $3,000

answerchemical property;