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Journal Entries - Winconsin Alps

P3_28a questions

P3-28a
Journalize the adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Wisconsin alps. No other adjusting entries have been made for the year.

A- Prior to making the adjusting entry on December 31, the balance in Prepaid Insurance is $3,600. Wisconsin Alps pays liability insurance each year on March 31.

B- Wisconsin Alps pays employees each Friday. The amount of the weekly payroll is $5,000 for a five-day workweek. December 31, the fiscal year-end is a Monday.

C- Wisconsin Alps borrowed money, signing a note payable. For the current year, accrued interest amounts to $600 and will be paid next year.

D- The beginning balance of Supplies was $1600. During the year, it purchased supplies for $4,900, and at December 31 the supplies on hand total $2,100.

E- Wisconsin Alps contracts with corporations who reward their employees with skiing vacations. The corporations paid $16,000 in advance. This receipt was journalized and posted as a debit to Cash and credit to Unearned Service Revenue. The owner determines that Wisconsin Alps earned one-fourth of the total fee received during the current year.

F- Depreciation for the current year includes Ski Lifts, $3,850, and Lighting Equipment, $1,300.

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Solution Summary

The solution provides adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Wisconsin Aps.

$2.19