FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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a. Wages of $13,000 are earned by workers but not paid as of December 31.
b.
c. The Supplies account had a $430 debit balance at the beginning of the year. During the year, $4,599 of supplies are purchased. A physical count of supplies at December 31 shows $510 of supplies available. Saved
d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,800 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, analyze each
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