Business, 03.07.2020 23:01 kieramacphee6216

Roland Company began operations on December 1 and needs assistance in preparing December 31 financial statements, including its year-end adjustments. The Tableau dashboard is provided to assist in the work. Dec-1 prepaid 24 month insurance policy(coverage starting immediately) for $24,000 cash.
Dec-7 purchased supplies for $2,000 cash.
Dec-13 agreed to do $10,000 worth of work for Telo over the next 30.payment is to be received when the work is completed on Jan12.
Dec-24 received $4,000 cash in advance to perform work for ABX over the next four weeks.
Jan-5 paid wages of $800 cash to workers.
Jan-12 received $10,000 cash from Telo for work performed over the last 30 days.
Additional Information as of December 31
Telo Job Completion at Year-End: Telo 60% Complete
ABX Job Completion at Year-End:ABX 25% Complete
Supplies Remaining at Year-End
Wages Earned By Workers but not yet Paid at Year-End
1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries.
2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue.
3. Record the journal entries required for January.

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Answer from: adriandehoyos1p3hpwc

Incomplete Question, You omitted the values for the following

supplies remaining at year-end: $700

Wages earned by workers but not yet paid at year-end: $500

Explanation:

1. To Record the journal entries required for December, excluding the December 31 year-end adjusting entries.

Cash Paid for prepaid insurance

Date Account and Explanation Debit Credit

1st Dec Prepaid Insurance $24,000

Cash $24,000

Supplies purchased in cash

7th Dec Supplies $2000

Cash $2,000

13th Dec No ENTRY Roland Co agreed to do but has not done itr yet.

Advance received from ABX

24th Dec Cash $4,000

Unearned Revenue $4,000

2. To Record the December 31 year-end adjusting entries for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue.

Insurance expense

Date Account and Explanation Debit Credit

31st Dec Insurance Expense $1,000

Prepaid Expense $1,000

Calculation.24 month insurance policy for $24,000 cash.

Insurance for a month = 24,000/24= 1000

Supplies Expense

Date Account and Explanation Debit Credit

31st Dec Supplies Expense $1,300

Supplies $1,300

Calculation :purchased supplies for $2,000 --supplies remaining at year-end, $700= $1,300

To record Wages earned by workers but not yet paid at year-end: $500

Date Account and Explanation Debit Credit

31st Dec Wages Expense $500

Wages Payable $500

Service Revenue from Telo

Date Account and Explanation Debit Credit

31st Dec Accounts receivable $6,000

Service Revenue $6,000

calculation=Job Completion at Year-End x received cash of worth of work for Telo = 60% x 10,000 = %6,000

Service Revenue from Abx

Date Account and Explanation Debit Credit

31st Dec Unearned Revenue $1,000

Service Revenue $1,000

calculation=Job Completion at Year-End x cash in advance to perform work = 25% x 4,000 = $1,000

3. Journal entry for January

Payment Of wages recorded

Date Account and Explanation Debit Credit

5 Jan Wages Payable $500

Wages Expense (800-500) $300

Cash $800

Payments from Telo Recorded

Date Account and Explanation Debit Credit

12 Jan Cash $10,000

Account Receivable $6,000

Service Revenue(10,000-6000) $4,000

Answer from: Quest

This statement is true.

Answer from: Quest

The answer should be b.

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