a. Wages of $6,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $10,840. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended Decem 31.

a. Wages of $6,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $10,840. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,221 of supplies are purchased. A physical count of supplies at December 31 shows $572 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $850 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended Decem 31.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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