Wedona Energy Consultants prepares adjusting entries

monthly Based on an #4316

Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the
unadjusted trial balance at January 31, 2014, the following information was available for the
preparation of the January 31, 2014, month-end adjusting entries:a. Equipment purchased on
November 1 of this accounting period for $21,600 is estimated to have a useful life of three
years. After three years of use, it is expected that the equipment will be scrapped due to
technological obsolescence.b. Of the $11,400 balance in Unearned Consulting Fees, $8,700
had been earned.c. The Prepaid Rent account showed a balance of $13,500. This was paid on
January 1 of this accounting period and represents six months of rent commencing on the same
date.d. Accrued wages at January 31 totalled $ 18,500.e. One month of Interest had accrued at
the rate of 4% per year on a $42,000 note payable.f. Unrecorded and uncollected consulting
fees at month-end were $6,150.g. A $3,510 insurance policy was purchased on April 1 of the
current accounting period and debited to the Prepaid Insurance account. Coverage began April
1 for 18 months.h. The monthly depreciation on the office furniture was $625.i. Repair revenues
accrued at month-end totalled $3,400.j. The Store Supplies account had a balance of $800 at
the beginning of January. During January, $1,780 of supplies were purchased and debited to
the Store Supplies account. At month-end, a count of the supplies revealed a balance of
$650.Required Prepare adjusting journal entries for the month ended January 31, 2014, based
on the above.View Solution:
Wedona Energy Consultants prepares adjusting entries monthly Based on an

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