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Depreciation on the company’s wind turbine equipment for the year is $6,200. The Prepaid Insurance account for the solar panels had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,200 of unexpired insurance coverage remains at year-end. The company received $6,600 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. As of December 31, $2,400 in wages expense for the organic produce workers has been incurred but not yet paid. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, prepare the required December 31 year-end adjusting entries. Score answer Visit question mapQuestion 10 of 10 Total 10 of 10 Prev

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Answer & Explanation:

depreciation expense                  6,200  debit

  accumulated depreciation wind turbine   6,200 credit

to record depreciation expense

insurance expense       2,000 debit

        prepaid insurance                      2,000 credit

to record expired insurance

unearned revenue 2,200 debit

                service revenue    2,200 credit

to record service paid in advance

wages expense 2,400 debit

   wages payable     2,400 credit

to record accrued wages for the period

interest receivable 520 debit

    interest revenue          520 credit

to record interest earned for the period.

The Journal entries are the systematic record of the financial transactions of any business. The Journal entries of the above company are given in the image below.

What are journal entries?

Journal entries define the record of all the transactions of the business in a systematic way, with the recording of amounts in their respective debit and credit columns. The another statements and the accounts are based on the journal entries.

The above company incurs the amount of depreciation, paid the amount of insurance, etc which are normal for any business to carry on its business.

Therefore, the journal entries of the above company are given in the image below.

Learn more about the journal entries, refer to:

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