Preparing adjusting entries LO P1, P3, P4 a. Wages of $10,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company’s equipment for the year is $10,600.
c. The Office Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,251 of office supplies are purchased. A physical count of supplies at December 31 shows $575 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 $1,600 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $900 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.
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.