Question

Hwang Ltd. has the following balances in selected accounts on December 31, 2017. Accounts Receivable NT$ –0– Accumulated Depreciation—Equipment –0– Equipment 210,000 Interest Payable –0– Notes Payable 240,000 Prepaid Insurance 63,100 Salaries and Wages Payable –0– Supplies 73,500 Unearned Service Revenue 900,000

All the accounts have normal balances. The information below has been gathered at December 31, 2017.

1. Hwang borrowed NT$240,000 by signing a 6%, 1-year note on October 1, 2017. 2. A count of supplies on December 31, 2017, indicates that supplies of NT$23,400 are on hand. 3. Depreciation on the equipment for 2017 is NT$30,000. 4. Hwang paid NT$63,000 for 12 months of insurance coverage on June 1, 2017. 5. On December 1, 2017, Hwang collected NT$900,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. 6. Hwang performed consulting services for a client in December 2017. The client will be billed NT$117,000. 7. Hwang pays its employees total salaries of NT$270,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2017. Instructions Prepare annual adjusting entries for the seven items described above.

Answer 1

Solution:

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