ACC 231 CH. 3

Wage expenses of $4,000 have been incurred but are not paid as of December 31, 2015.

Debit: Wages expense 4,000 Credit: Wages payable 4,000

The prepaid insurance account had a $5,500 debit balance at December 31, 2015, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,970 of coverage had expired.

Debit: Insurance expense 4,970 Credit: Prepaid insurance 4,970

The prepaid insurance account had a $7,000 debit balance at December 31, 2015, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $530 of unexpired insurance coverage remains.

Debit: Insurance expense 6,470 Credit: Prepaid Insurance 6,470

The Office Supplies account had a $590 debit balance on December 31, 2014; and $2,680 of office supplies were purchased during the year. The December 31, 2015, physical count showed $696 of supplies available.

Debit: Office supplies expense 2,574 Credit: Office Supplies 2,574

One-fourth of the work related to $11,000 of cash received in advance was performed this period.

Debit: Unearned fee revenue 2,750 Credit: Fee revenue 2,750

Depreciation on the company's equipment for 2015 is computed to be $15,000

Debit:Depreciation expense—Equipment 15,000 Credit: Accumulated depreciation-Equipment 15,000