Answer:Incomplete Question, You left out the values for the following:
supplies left as of year-end: $700
Wages due to workers but unpaid at year-end: $500
Explanation:
1. To document the journal entries needed for December, excluding end-of-year adjustments for December 31.
Cash Outlay for prepaid insurance
Date Account and Description Debit Credit
1st Dec Prepaid Insurance $24,000
Cash $24,000
Cash purchase of supplies
7th Dec Supplies $2000
Cash $2,000
13th Dec No ENTRY Roland Co agreed to perform but has yet to execute.
Advance payment received from ABX
24th Dec Cash $4,000
Unearned Revenue $4,000
2. To Complete the adjusting entries for December 31 for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue.
Insurance expense
Date Account and Description Debit Credit
31st Dec Insurance Expense $1,000
Prepaid Expense $1,000
Calculation:A 24-month insurance policy costs $24,000.
Monthly insurance = 24,000/24= 1000
Supplies Expense
Date Account and Description Debit Credit
31st Dec Supplies Expense $1,300
Supplies $1,300
Calculation:Purchased supplies for $2,000 minus year-end remaining supplies of $700 = $1,300
Wages earned by employees but not yet compensated at year-end: $500
Date Account and Description Debit Credit
31st Dec Wages Expense $500
Wages Payable $500
Service Revenue from Telo
Date Account and Description Debit Credit
31st Dec Accounts Receivable $6,000
Service Revenue $6,000
Calculation=Job Completion at Year-End with cash received for the work done for Telo = 60% x 10,000 = $6,000
Service Revenue from ABX
Date Account and Description Debit Credit
31st Dec Unearned Revenue $1,000
Service Revenue $1,000
Calculation:Job Completion at Year-End multiplied by the cash advance to perform the work = 25% x 4,000 = $1,000
3. Journal entry for January
Payment of wages recorded
Date Account and Description Debit Credit
5 Jan Wages Payable $500
Wages Expense (800-500) $300
Cash $800
Payments from Telo Documented
Date Account and Description Debit Credit
12 Jan Cash $10,000
Accounts Receivable $6,000
Service Revenue(10,000-6000) $4,000
