aworski’ s Ski Store is completing the accounting process for its first year ended December 31,…
- March 05, 2021/ Questions
aworski’ s Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: The unadjusted balance in Supplies was $780 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed 0 of supplies on hand. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $3,000. The last paychecks were issued December 28; the next payments will be made on January 6, 2019.A portion of the store’s basement is now being rented for $1,030 per month to K. Frey. On November 1, 2018, the store collected six months’ rent in advance from Frey in the amount of $6,180. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018.On December 31, 2018, the unadjusted balance in Prepaid Insurance was $2,580. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018.Jaworski’s store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $680. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019.Required:For each situation, prepare the adjusting journal entry that Jaworski’s should record at December 31, 2018.