Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following independent cases affecting Woods Corp. Include an explanation for each entry. a. Details of Prepaid Insurance are shown in the account:
Woods prepays insurance on March 31 each year. At December 31, $900 is still prepaid. b. Woods pays employees each Friday. The amount of the weekly payroll is$6,200 for a five-day work week. The current accounting period ends on Monday. c. Woods has a note receivable. During the current year, Woods has earned accrued interest revenue of $500 that it will collect next year. d. The beginning balance of supplies was$2,700. During the year, Woods purchased supplies costing $6,400, and at December 31 supplies on hand total$2,300. e. Woods is providing services for Blue Whale Investments, and the owner of Blue Whale paid Woods $11,900 as the annual service fee. Woods recorded this amount as Unearned Service Revenue. Woods estimates that it has earned 70% of the total fee during the current year. f. Depreciation for the current year includes Office Furniture,$3,500, and Equipment, $5,800. Make a compound entry.
Step 11 of 4
In this problem, we are asked to prepare the adjusting entries needed on December 31.