Prepare Adjusting Entries for the Year Ended December 31,for Each

question 158

Essay

Prepare adjusting entries for the year ended December 31,for each of these separate situations.Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance are initially recorded as liabilities.
a.The Prepaid Rent account has a debit balance of $8,000 before adjustment,representing a prepayment for four months' rent made on December 1 of the current year.
b.One-third of the work related to $18,000 of cash received in advance was performed during this period.
c.Unpaid accrued salaries at December 31 amounts to $15,000
d.Work was completed for a client on December 31 in the amount of $21,000,but was not previously billed or recorded.
e.Estimated depreciation on office equipment is $27,000.

---

Definitions:

Severe Drought

An extended period of exceptionally low rainfall, leading to a shortage of water.

Wheat Crop

Wheat crop refers to the cultivation of wheat plants for the purpose of producing wheat grains, which are a staple food in many countries and used in making flour for bread, pasta, and other products.

Supply

The total amount of a product or service available for purchase at any given price.

Price Of Oil

The cost at which crude oil is bought and sold, influenced by global supply and demand, geopolitical issues, and economic conditions.