Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $11,440. The Office Supplies account had a $350 debit balance at the beginning of the year. During the year, $5,367 of office supplies are purchased. A physical count of supplies at December 31 shows $587 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,800 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $700 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.

wages expense 8,000 debit

   wages payables   8,000 credit

depreciation expense 11,440 debit

  accumulated depreciation equipment 11,440 credit

supplies expense 5,130 debit

   supplies                  5,130 credit

Insurance expense 3,200 debit

    Prepaid Insurance   3,200 credit

Interest Receivables 700 debit

    Interest Revenue      700 credit

interest expense 5,000 debit

  Interest payable   5,000 credit

Explanation:

We follow the accountign rinciples: Debit = Credit

And one line per account

and all accounts posted must have a balance

Additional calculations:

Supplies

beginning + purchase = used + ending

350 + 5,367 =  used + 587

used supplies = 350 + 5,367 - 587 = 5,130

Insurance

Beginning unexpired - Ending unexired = expired

5,000 - 1,800 = 3,200

answer; (a) conduct a worksite inspection;

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.