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Adjustment Account and details REF Debit Credit
1 Interest Expense
Interest Payable
To record December interest expense to bepaid in January
2 Expense for Outside Services
Accounts Payable
To record liability towardscontractor
3 Rental Expenses
Prepaid Rent
Cash
To record the appropiate rental expensefor the month
4 Wage Expense
Wages Payable
To record liability towards employees
5 Prepaid Insurance
Cash
To record insurance payment for thefollowing year
Total $0 $0

The following adjustments need to be made before the financialstatements can be prepared at the end of the year.
Task 1: Enter the necessary journal entries into the templateprovided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of thefollowing year: accrue $1,000.
A contractor (outside services) has finished work on December 31st,but the invoice will not be received until January 7th of thefollowing year: accrue $750. A rent payment was made on December1st for three months from December 1st to February 28th of thefollowing year (6,000 in total). Record the transactionproperly.

The company’s part-time employees worked a total of 50 hours inDecember, but will get paid only by January 5th. The hourly rate is$15.
The company must record the payment of its annual insurance premiumfor next year. The annual premium is $1,200, an adjustment isnecessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises2.1 and 2.2 to show the adjusted trial balance).
Submission Requirements:
Click here to download the template for calculation.

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Tod Thiel
Tod ThielLv2
28 Sep 2019

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The following adjustments need to be made before the financialstatements can be prepared at the end of the year.
Task 1: Enter the necessary journal entries into the templateprovided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of thefollowing year: accrue $1,000.
A contractor (outside services) has finished work on December 31st,but the invoice will not be received until January 7th of thefollowing year: accrue $750. A rent payment was made on December1st for three months from December 1st to February 28th of thefollowing year (6,000 in total). Record the transactionproperly.

The company’s part-time employees worked a total of 50 hours inDecember, but will get paid only by January 5th. The hourly rate is$15.
The company must record the payment of its annual insurance premiumfor next year. The annual premium is $1,200, an adjustment isnecessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises2.1 and 2.2 to show the adjusted trial balance).

1 Interest Expense
Interest Payable
To record December interest expense to bepaid in January
2 Expense for Outside Services
Accounts Payable
To record liability towardscontractor
3 Rental Expenses
Prepaid Rent
Cash
To record the appropiate rental expensefor the month
4 Wage Expense
Wages Payable
To record liability towards employees
5 Prepaid Insurance
Cash
To record insurance payment for thefollowing year
Total $0 $0
TRIAL BALANCE Starting Balance Adjusting Entry 1 Adjusting Entry 2 Adjusting Entry 3 Adjusting Entry 4 Adjusting Entry 5 Adjusted Trial Balance
Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-)
Cash - -
Prepaid Rent - -
Prepaid Insurance - -
Finished Goods - -
Receivables - -
Machinery and Equipment - -
Building - -
Common Stock - -
Bank Loans - -
Accounts Payable - -
Interest Payable - -
Wages Payable - -
Sale of Goods Produced - -
Cost of Goods Sold - -
Expense for Outside Services - -
Wage Expenses - -
Rent Expense - -
Depreciation - -
Insurance Expense - -
Interest Expense - -
- - - - - - - - - - - - - -

Terrific Temps fills temporary employment positions for localbusinesses. Some businesses pay in
advance for services; others are billed after services have beenperformed. Advanced payments are
credited to an account entitled Unearned Fees. Adjusting entriesare performed on a monthly basis.
An unadjusted trial balance dated December 31, 2015, follows. (Bearin mind that adjusting entries
have already been made for the first 11 months of 2015, but not forDecember.)


TERRIFIC TEMPS
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2015
Cash $ 27,020
Accounts receivable 59,200
Unexpired insurance 900
Prepaid rent 3,000
Office supplies 600
Equipment 60,000
Accumulated depreciation: equipment $ 29,500
Accounts payable 4,180
Notes payable 12,000
Interest payable 320
Unearned fees 6,000
Income taxes payable 4,000
Unearned revenue 20,000
Retained earnings 49,000
Capital stock 25,000
Dividends 3,000
Feesearned 75,000
Travel expense 5,000
Insurance expense 2,980
Rentexpense 9,900
Office supplies expense 780
Utilities expense 4,800
Depreciation expense: equipment 5,500
Salaries expense 30,000
Interest expense 320
Income taxes expense 12,000
$ 225,000 $ 225,000

Other Data
1. Accrued butunrecorded fees earned as of December 31, 2015, amount to$1,500.
2. Records showthat $2,500 of cash receipts originally recorded as unearned feeshad been earned as of December 31.
3. The companypurchased a six-month insurance policy on September 1, 2015, for$1,800.
4. On December 1,2015, the company paid its rent through February 28, 2016.
5. Office supplieson hand at December 31 amount to $400.
6.

All equipment was purchased when the business first formed. Theestimated life of the equipment at that time was 10 years (or 120months).
7.

On August 1, 2015, the company borrowed $12,000 by signing asix-month, 8 percent note payable. The entire note, plus sixmonths' accrued interest, is due on February 1, 2016.
8. Accrued butunrecorded salaries at December 31 amount to $2,700.
9. Estimated incometaxes expense for the entire year totals $15,000. Taxesare due in the first quarter of 2016.

Instructions
a. For each of thenumbered paragraphs, prepare the necessary adjusting entry.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.)

Journal Entry Worksheet

Record the accrued but uncollected fees earned.

Record fees earned as of December 31st.

Record the December insurance expense.

Record the December rent expense.

Record the offices supplies used in December.

Record the December depreciation expense.

Record the interest accrued in December.

Record the salaries accrued in December.

Record the income taxes accrued in December.

Date GeneralJournal Debit Credit
Dec. 31

*Enter debits before credits

1. Fees earned
2. Travel expense
3. Insurance expense
4. Rent expense
5. Office supplies expense
6. Utilities expense
7. Depreciation expense: equipment
8. Interest expense
9. Salaries expense
10. Income taxes expense
. The unadjusted trial balance reportsdividends of $3,000. As of December 31, 2015, have these dividendsbeen paid?
Yes
No

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Sales salaries $325,000 Warehouse salaries 196,000 Office salaries 131,000 $652,000 Deductions: Income tax withheld $119,000 Social security tax withheld 39,120 Medicare tax withheld 9,780 Retirement savings 14,344 Group insurance 11,736 $193,980 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.6% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

CHART OF ACCOUNTS
Pharrell Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Merchandise Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Income Tax Payable
220 Group Insurance Payable
221 Retirement Savings Payable
222 Union Dues Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
EQUITY
310 Owner, Capital
311 Owner, Drawing
312 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Sales Salaries Expense
521 Warehouse Salaries Expense
522 Office Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
540 Miscellaneous Expense
710 Interest Expense

A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. B. On page 12 of the journal: January 5, to record the employer’s payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.

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