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:

Institute of Social Research

An organization or facility dedicated to conducting and disseminating research on social issues, often associated with academic institutions.

Nazi Regime

The Nazi Regime refers to the totalitarian government led by Adolf Hitler in Germany from 1933 to 1945, which is known for initiating World War II and committing massive atrocities, including the Holocaust.

Capitalist Society

is a socio-economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Joseph Schumpeter

An economist and political scientist known for his theories on economic development and capitalism, particularly the concept of "creative destruction."