homework question 459775

Jaguar Auto Company provides general car maintenance to customers. The company’s fiscal year-end is December 31. The December 31, 2012, trial balance (before any adjusting entries) appears below.

Accounts Debits Credits

Cash $ 17,000

Accounts receivable 14,000

Supplies 22,000

Prepaid insurance 18,000

Equipment 85,000

Accumulated depreciation $ 27,000

Accounts payable 11,000

Salaries payable 0

Utilities payable 0

Interest payable 0

Notes payable 30,000

Common stock 25,000

Retained earnings 9,000

Dividends 2,000

Service revenue 220,000

Salaries expense 153,000

Depreciation expense 0

Insurance expense 0

Supplies expense 0

Utilities expense 11,000

Interest expense 0

Totals $ 322,000 $ 322,000

Information necessary to prepare the year-end adjusting entries appears below.

a. Depreciation on the machines for the year is $9,000.

b.

Employee salaries are paid every two weeks. The last pay period ended on December 23. Salaries earned from December 24 through December 31, 2012, are $3,000.

c.

On September 1, 2012, Jaguar borrows $30,000 from a local bank and signs a note. The note requires interest to be paid annually on August 31 at 9%. The principal is due in five years.

d.

On March 1, 2012, the company purchases insurance for $18,000 for a one-year policy to cover possible injury to mechanics. The entire $18,000 is debited to Prepaid Insurance at the time of the purchase.

e. $4,000 of supplies remains on hand at December 31, 2012.

f.

On December 30, Jaguar receives a utility bill of $1,700 for the month. The bill will not be paid until early January 2013, and no entry is recorded when the bill is received.

Required:

Prepare the necessary adjusting entries on December 31, 2012. (Do not round your intermediate calculations. Omit the “$” sign in your response.)

Event General Journal Debit Credit

a.

b.

c.

d.

e.

f.