The unadjusted trial balance of Lukas Films Corporation includes the following account balances at December 31, 2016, its fiscal year-end. Assume all accounts have normal debit or credit balances as applicable.
|
Prepaid rent |
$ 1,500 |
|
Equipment |
2,400 |
|
Unearned advertizing revenue |
1,000 |
|
Insurance expense |
900 |
|
Supplies expense |
600 |
|
Telephone expense |
825 |
|
Wages expense |
15,000 |
The following information applies at December 31:
|
a. |
A physical count of supplies indicates that $300 of supplies have not yet been used at December 31. |
|
b. |
A $75 telephone bill for December has been received but not recorded. |
|
c. |
One day of wages amounting to $125 remains unpaid and unrecorded at December 31; the amount will be included with the first Friday payment in January. |
|
d. |
The equipment was purchased December 1; it is expected to last 2 years. No depreciation has yet been recorded. |
|
e. |
The prepaid rent is for December 2016, and January and February 2017; rent is $500 per month. |
|
f. |
Half of the advertizing revenue has been earned at December 31. |
|
g. |
The $900 amount in Insurance Expense is for a one-year policy, effective July 1, 2016. |
Required: Prepare all necessary adjusting entries at December 31, 2016. Include general ledger account numbers (see chart of accounts in chapter 2). Descriptions are not needed.
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