Adjusting Entries - Laughter Landscaping
Not what you're looking for?
Journalizing adjusting entries
Laughter Landscaping has the following independent cases at the end of the year on December 31, 2014.
a) Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a Wednesday.
b) Details of Prepaid insurance are shown in the account:
Prepaid insurance - Jan 1 $4,500
Laughter prepays a full year's insurance each year on January 1. Record insurance expense for the year ended December 31.
c)The beginning balance of Supplies was $4,000. During the year, Laughter purchased supplies for $5,200, and at December 31 the supplies on hand total $2,400.
d)Laughter designed a landscape plan, and the client paid Laughter $7,000 at the start of the project. Laughter recorded this amount as Unearned Service Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 60% of the total revenue during the current year.
e)Depreciation for the current year includes Equipment, $3,700; and Trucks, $1,300. Make a compound entry.
Requirement:
Journalize the adjusting entry needed on December 31, 2014, for each of the previous items affecting Laughter Landscaping.
Purchase this Solution
Solution Summary
File contains detailed instructions for the completion of adjusting entries for the Laughter Lanscaping exercise.
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.