PROBLEM 3-2 (LO1,2) Adjusting Entries The unadjusted trial balance of Lukas Films Corporation includes the following account balances at December 31, 2015, its fiscal year-end. Assume all accounts have normal debit or credit balances as applicable. Prepaid Rent $1,500 Unused Supplies -0- Equipment 2,400 Unearned Advertising Revenue 1,000 Insurance Expense 900 Supplies Expense 600 Telephone Expense Wages Expense 825 15,000 The following information applies at December 31: Problems 141 a. A physical count of supplies indicates that $100 of supplies have not yet been used at December 31. b. A $75 telephone bill for December has been received but not recorded. c. One day of wages amounting to $125 remains unpaid and unrecorded at December 31; the amount will be included with the first Friday payment in January. d. The equipment was purchased December 1; it is expected to last 2 years. No depreciation has yet been recorded. e. The prepaid rent is for three months: December 2015, January 2016, and February 2016. f. Half of the unearned advertising has been earned at December 31. g. The $900 balance in Insurance Expense is for a one-year policy, effective August 1, 2015. Required: Prepare all necessary adjusting entries at December 31, 2015. Descriptions are not needed.
PROBLEM 3-2 (LO1,2) Adjusting Entries The unadjusted trial balance of Lukas Films Corporation includes the following account balances at December 31, 2015, its fiscal year-end. Assume all accounts have normal debit or credit balances as applicable. Prepaid Rent $1,500 Unused Supplies -0- Equipment 2,400 Unearned Advertising Revenue 1,000 Insurance Expense 900 Supplies Expense 600 Telephone Expense Wages Expense 825 15,000 The following information applies at December 31: Problems 141 a. A physical count of supplies indicates that $100 of supplies have not yet been used at December 31. b. A $75 telephone bill for December has been received but not recorded. c. One day of wages amounting to $125 remains unpaid and unrecorded at December 31; the amount will be included with the first Friday payment in January. d. The equipment was purchased December 1; it is expected to last 2 years. No depreciation has yet been recorded. e. The prepaid rent is for three months: December 2015, January 2016, and February 2016. f. Half of the unearned advertising has been earned at December 31. g. The $900 balance in Insurance Expense is for a one-year policy, effective August 1, 2015. Required: Prepare all necessary adjusting entries at December 31, 2015. Descriptions are not needed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PROBLEM 3-2 (LO1,2) Adjusting Entries
The unadjusted trial balance of Lukas Films Corporation includes the following account balances at
December 31, 2015, its fiscal year-end. Assume all accounts have normal debit or credit balances
as applicable.
Prepaid Rent
$1,500
Unused Supplies
-0-
Equipment
2,400
Unearned Advertising Revenue
1,000
Insurance Expense
900
Supplies Expense
600
Telephone Expense
Wages Expense
825
15,000
The following information applies at December 31:
Problems
141
a. A physical count of supplies indicates that $100 of supplies have not yet been used at December
31.
b. A $75 telephone bill for December has been received but not recorded.
c. One day of wages amounting to $125 remains unpaid and unrecorded at December 31; the
amount will be included with the first Friday payment in January.
d. The equipment was purchased December 1; it is expected to last 2 years. No depreciation has
yet been recorded.
e. The prepaid rent is for three months: December 2015, January 2016, and February 2016.
f. Half of the unearned advertising has been earned at December 31.
g. The $900 balance in Insurance Expense is for a one-year policy, effective August 1, 2015.
Required: Prepare all necessary adjusting entries at December 31, 2015. Descriptions are not
needed.
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