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:

Dense Connective Tissue

A type of connective tissue with closely packed collagen fibers, giving it strength and durability, often found in tendons and ligaments.

Fibroblasts

Cells found in connective tissue, responsible for producing collagen and other fibers.

Adipocytes

Cells specialized in storing energy as fat, found mainly in adipose tissue.

Estrogen Levels

The concentration of estrogen hormones in the body, which are critical for sexual and reproductive development and regulation.