On April 2, the company prepaid $9,000 cash for twelve months’ rent for office space. Prepare the required adjusting entry, if any.
The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy; the policy’s coverage began on April 1. Prepare the required adjusting entry, if any.
Office supplies on hand as of April 30 total $1,200. Prepare the required adjusting entry, if any.
Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month. Prepare the required adjusting entry, if any.
The company has completed work for a client, but has not yet billed the $1,800 fee. Prepare the required adjusting entry, if any.
Wages due to employees, but not yet paid, as of April 30 total $2,600. Prepare the required adjusting entry, if any.
- 101: Cash
- 106: Accounts receivable
- 124: Office supplies
- 128: Prepaid insurance
- 131: Prepaid rent
- 163: Office equipment
- 164: Accumulated depreciation – Office equipment
- 201: Accounts payable
- 204: Wages payable
- 307: Common stock
- 318: Retained earnings
- 319: Dividends
- 403: Services revenue
- 501: Rent expense
- 502: Insurance expense
- 503: Office supplies expense
- 505: Wages expense
- 510: Depreciation expense – Office equipment
- 690: Utilities expense
