1) Laughter Landscaping has given independent cases at ending of the year on December 31, 2014.
a) Every Friday, Laughter pays employees for present week’s work. Amount of weekly payroll is $7,000 for 5-day workweek. This year December 31 falls on Wednesday.
b) Details of Prepaid insurance are given in account:
Jan 1, $4,500
Laughter prepays the full year’s insurance each year on January 1. Record insurance expense for year ended December 31.
c) Beginning balance of Supplies was= $4,000. In the year, Laughter bought supplies for= $5,200, and at December 31 supplies on hand total= $2,400. Laughter designed landscape plan, and client paid Laughter $7,000 at start of project.
d) Laughter recorded this amount as unearned service revenue. Job will take numerous months to complete, and Laughter evaluates that company has earned= 60% of total revenue in present year.
e) Depreciation for present year includes Equipment, $3,700; and Trucks, $1,300.
Make a compound entry.
Journalize adjusting entry required on December 31, 2014, for each of preceding items affecting Laughter Landscaping.