The following adjustments need to be made before the

Assignment Help Accounting Basics

Reference no: EM13575396

The following adjustments need to be made before the financial statements can be prepared at the end of the year. Task 1: Enter the necessary journal entries into the template provided and provide the journal entry for each. December Interest on a bank loan is due on January 2nd of the following year: accrue $1,000. A contractor (outside services) has finished work on December 31st, but the invoice will not be received until January 7th of the following year: accrue $750. A rent payment was made on December 1st for three months from December 1st to February 28th of the following year (6,000 in total). Record the transaction properly. The companys part-time employees worked a total of 50 hours in December, but will get paid only by January 5th. The hourly rate is $15. The company must record the payment of its annual insurance premium for next year. The annual premium is $1,200, an adjustment is necessary to prepaid insurance. Task 2: Provide the adjusted trial balance (combine exercises 2.1 and 2.2 to show the adjusted trial balance).

Adjustment	Account and details	REF	Debit	Credit
1	Interest Expense
	Interest Payable
	To record December interest expense to be paid in January
2	Expense for Outside Services
	Accounts Payable
	To record liability towards contractor
3	Rental Expenses
	Prepaid Rent
	Cash
	To record the appropiate rental expense for the month
4	Wage Expense
	Wages Payable
	To record liability towards employees
5	Prepaid Insurance
	Cash
	To record insurance payment for the following year

	Total		$0	$0

Reference no: EM13575396

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