Journalizing adjusting entries and subsequent journal entries P3-33A Laughter Landscaping has collected the following data for the December 31 adjusting entries a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3 b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000. was $4,300. During the year, Laughter c. The beginning balance of Office Supplies purchased office supplies for $5,600, and at December 31 the office supplies on hand total $1,500. d. During December, Laughter designed a landscape plan and the client prepaid $6,500. Laughter recorded this amount as Unearned Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 40% of the total revenue during the current year. e. At December 31, Laughter had earned $3,000 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10. f. Depreciation for the current year includes Equipment, $3,000; and Trucks, $2,200 g. Laughter has incurred $250 of interest expense on a $550 interest payment due on January 15. Requirements 1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laughter Landscaping. Assume Laughter records adjusting entries only at the end of the year. 2. Journalize the subsequent journal entries for adjusting entries a, d, and g.
Journalizing adjusting entries and subsequent journal entries P3-33A Laughter Landscaping has collected the following data for the December 31 adjusting entries a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3 b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000. was $4,300. During the year, Laughter c. The beginning balance of Office Supplies purchased office supplies for $5,600, and at December 31 the office supplies on hand total $1,500. d. During December, Laughter designed a landscape plan and the client prepaid $6,500. Laughter recorded this amount as Unearned Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 40% of the total revenue during the current year. e. At December 31, Laughter had earned $3,000 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10. f. Depreciation for the current year includes Equipment, $3,000; and Trucks, $2,200 g. Laughter has incurred $250 of interest expense on a $550 interest payment due on January 15. Requirements 1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laughter Landscaping. Assume Laughter records adjusting entries only at the end of the year. 2. Journalize the subsequent journal entries for adjusting entries a, d, and g.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 52E: Adjusting Entries Exercise 3-52 Allentown Services Inc. is preparing adjusting entries for the year...
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Transcribed Image Text:Journalizing adjusting entries and subsequent journal entries
P3-33A
Laughter Landscaping has collected the following data for the December 31 adjusting
entries
a. Each Friday, Laughter pays employees for the current week's work. The amount
of the weekly payroll is $8,000 for a five-day workweek. This year, December 31
falls on a Tuesday. Laughter will pay its employees
on January 3
b. On January 1 of the current year, Laughter purchases an insurance policy that
covers two years, $8,000.
was $4,300. During the year, Laughter
c. The beginning balance of Office Supplies
purchased office supplies for $5,600, and at December 31 the office supplies on
hand total $1,500.
d. During December, Laughter designed a landscape plan and the client prepaid
$6,500. Laughter recorded this amount as Unearned Revenue. The job will take
several months to complete, and Laughter estimates that the company has
earned 40% of the total revenue during the current year.
e. At December 31, Laughter had earned $3,000 for landscape services completed
for Turnkey Appliances. Turnkey has stated that it will pay Laughter on
January
10.
f. Depreciation for the current year includes Equipment, $3,000; and Trucks,
$2,200
Transcribed Image Text:g. Laughter has incurred $250 of interest expense on a $550 interest payment due
on January 15.
Requirements
1. Journalize the adjusting entry needed on December 31 for each of the previous
items affecting Laughter Landscaping. Assume Laughter records adjusting
entries only at the end of the year.
2. Journalize the subsequent journal entries for adjusting entries a, d, and g.
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