Question

Make the year end, 12-31-17, general journal adjustments for Macomb Mold Company.
Company only prepares adjustments and financial statements once a year on 12-31.
Here is this information to make the adjustments:

1 On 9-1-17 Company paid for a one yr. liability. insurance policy where coverage began 9-1-17.
Paid and Debited to the acct. Prepaid Insurance 2,850.00

+ During the year the company borrowed money from a bank.
Interest will be paid 5-15-18 but accrued interest @ 12-31-17 is 825.00

3 For the year, Depreciation on Machinery is 4,500 and on Office Furniture 1,300

4 Supplies acct. balance is now 2,150 but an inventory shows on hand 750.00

5 Company wages are 5,000 a week, paid weekly on Monday for the previous week worked.
Assume Dec 31, 2017 fell on a Wednesday

6 At 12-31-17 half of a 20,000 service was completed but can not be invoiced until March, 2018

7 On 10-1-17 we were paid 5,000 up front for a job we will finish sometime in 2018.
On 12-31-17 this job is 25% completed. The orig. collection was credited to unearned rev.

Answer 1

Journal Entries :

Date	Accounts Titles and description	Debit $	Credit $
12-31	Insurance expense	2850
	Prepaid Insurance		2850
	(insurance expense booked)
	Interest expense	825
	Interest payable		825
	Depreciation expenses	5800
	Acc. Depreciation - Machinery		4500
	Acc. Depreciation - Off. Furniture		1300
	(being depreciation booked)
	Supplies expenses	1400
	Supplies		1400
	Wages expenses	3000
	Wages payable		3000
	(5000 *3/5)
	Accounts Receivable	10000
	Services revenue		10000
	(unbilled services now billed)
12-31	Unearned revenues	1250
	Services revenue		1250
	(5000 * 0.25)