E4-5 Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, LO4-2 A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: 1. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1 2 At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents Page 208 Shipping supplies on hand, January 1 of the current year $13,000 Purchases of shipping supplies during the current year 75,000 Shipping supplies on hand, counted on December 31 of the current year 20,000 Required 1. Using the process illustrated in the chapter, record the adjusting entry for insurance at December 31 of the current year 2. Using the process illustrated in the chapter, record the adjusting entry for supplies at December 31 of the current year, assuming that the shipping supplies purchased during the current year were debited in full to the account Shipping Supplies 3. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense? 4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies?
E4-5 Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, LO4-2 A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: 1. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1 2 At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents Page 208 Shipping supplies on hand, January 1 of the current year $13,000 Purchases of shipping supplies during the current year 75,000 Shipping supplies on hand, counted on December 31 of the current year 20,000 Required 1. Using the process illustrated in the chapter, record the adjusting entry for insurance at December 31 of the current year 2. Using the process illustrated in the chapter, record the adjusting entry for supplies at December 31 of the current year, assuming that the shipping supplies purchased during the current year were debited in full to the account Shipping Supplies 3. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense? 4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section22.1: Preparing Adjusting Entries
Problem 1OYO
Related questions
Question
Transcribed Image Text:E4-5 Recording Adjusting Entries and Reporting Balances in Financial Statements
LO4-1, LO4-2
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the
adjusting entries, the accountant learned the following:
1. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper
debited the full amount to Prepaid Insurance on October 1
2 At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting
documents
Page 208
Shipping supplies on hand, January 1 of the current year
$13,000
Purchases of shipping supplies during the current year
75,000
Shipping supplies on hand, counted on December 31 of the current year
20,000
Required
1. Using the process illustrated in the chapter, record the adjusting entry for insurance at December 31 of the current year
2. Using the process illustrated in the chapter, record the adjusting entry for supplies at December 31 of the current year, assuming that the
shipping supplies purchased during the current year were debited in full to the account Shipping Supplies
3. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense?
4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning