Prepare Adjusting Entries for the Following Items on December 31

question 134

Essay

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.
a)Amortization on equipment, $2,500
b)Services performed but unbilled, $3,500
c)Salaries owed to employees at year end, $2,500
d)Unearned service revenue earned, $5,500
e)Supplies used during the year, $3,200
f)Prepaid rent expired during the year, $7,500

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Definitions:

Centrifuged

The process of using centrifugal force to separate substances of different densities or to remove moisture.

Venipuncture

A medical procedure that involves puncturing a vein with a needle to extract blood or administer medication.

Heparin

A medication used as an anticoagulant to prevent and treat blood clots in the veins, arteries, or lungs.

Coagulation Studies

Tests that evaluate the blood's ability to clot properly, used to diagnose bleeding disorders or monitor anticoagulant therapy.