Prepare Adjusting Entries for the Following Items on December 31

question 156

Essay

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Eddison Don Repairs. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.
a)Amortization on truck, $500
b)Services performed but unbilled, $3,000
c)Salaries owed to employees at year end, $2,500
d)Unearned service revenue earned, $5,500
e)Supplies used during the year, $200
f)Prepaid rent expired during the year, $4,500
g)Prepaid insurance now expired $400

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Definitions:

Health Care Industry

The sector comprising medical services, manufacturing of medical equipment or drugs, insurance, and other goods and services designed to maintain or improve health.

GDP

Gross Domestic Product; the total market value of all the goods and services produced within a country in a specific period.

Health Clubs

Health clubs, also known as gyms or fitness centers, are facilities that provide a range of physical exercise equipment and programs to help individuals maintain or improve their fitness levels.

Medical Laboratories

Facilities where various forms of diagnostic and medical testing are conducted to obtain information about the health of patients.