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Journalizing adjusting entries and subsequent journal entries Landscaping has collected the following data for the December 31 adjusting entries a Each Friday pays employees for the current week

Journalizing adjusting entries and subsequent journal entries  Landscaping has collected the following data for the December 31 adjusting entries:

a. Each Friday,  pays employees for the current week’s work. The amount of the weekly payroll is $7,500 for a five-day workweek. This year, December 31 falls on a Wednesday. Lorring will pay its employees on January 2.

b. On January 1 of the current year,  purchases an insurance policy that covers two years, $2,500.

c. The beginning balance of Office Supplies was $3,900. During the year, Lorring purchased office supplies for $5,400, and at December 31 the office supplies on hand total $2,600.

d. During December,  designed a landscape plan and the client prepaid $5,000.  recorded this amount as Unearned Revenue. The job will take several months to complete, and Lorring estimates that the company has earned 60% of the total revenue during the current year.

e. At December 31,  had earned $4,500 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Lorring on January 10.

f. Depreciation for the current year includes Equipment, $3,300; and Trucks, $2,100.

g.  has incurred $400 of interest expense on a $900 interest payment due on January 15. Requirements

1. Journalize the adjusting entry needed on December 31 for each of the items affecting  Landscaping. Assume  records adjusting entries only at the end of the year.

2. Journalize the subsequent journal entries for adjusting entries a, d, and g.

Apr 21 2020 View more View Less

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