Journalizing adjusting entries and subsequent journal entriesP3-33ALaughter Landscaping has collected the following data for the December 31 adjustingentriesa. Each Friday, Laughter pays employees for the current week's work. The amountof the weekly payroll is $8,000 for a five-day workweek. This year, December 31falls on a Tuesday. Laughter will pay its employeeson January 3b. On January 1 of the current year, Laughter purchases an insurance policy thatcovers two years, $8,000.was $4,300. During the year, Laughterc. The beginning balance of Office Suppliespurchased office supplies for $5,600, and at December 31 the office supplies onhand 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 takeseveral months to complete, and Laughter estimates that the company hasearned 40% of the total revenue during the current year.e. At December 31, Laughter had earned $3,000 for landscape services completedfor Turnkey Appliances. Turnkey has stated that it will pay Laughter onJanuary10.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 dueon January 15.Requirements1. Journalize the adjusting entry needed on December 31 for each of the previousitems affecting Laughter Landscaping. Assume Laughter records adjustingentries only at the end of the year.2. Journalize the subsequent journal entries for adjusting entries a, d, and g.

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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
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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

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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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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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Expert Answer

Step 1

1. Record the adjusting entry on D...

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Date Account title and explanation Salary expense (S8.000/5)x21 Salary payable (To record the salaries expense) Debit (S) Credit (S) 3.200 (a) 3,200 Insurance expense [(S8.000/24)x12] Prepaid insurance (To record the insurance expense) (b) 4.000 4,000 Office sypplies expense |(S4,300+S5.600-$1,500) Office supplies |To record the supplies expense) 8,400 (c) 8.400 Unearned revemue (S6.500x40%) 2,600 (d) 2.600 Revemue earned |(To record the reveme earned) Accounts receivable 3,000 (e) Service revenue 18.000 (To record the service revenue earned Depreciation expense Accumulated depreciation: Equipment Accumulated depreciation: Trucks |(To record the depreciation expense) 5,200 3,000 2,200 Interest expense Interest payable (To record the interest expense) (g) 250 250

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