Badger Bagels had the following separate situations occur during 2016.The company's accountant is preparing the annual financial statements at December 31, 2016 and has asked you to prepare the adjusting entries for each situation using the financial statement effects template.
a. On June 1, 2016, Badger Bagels paid the annual lease amount on its warehouse space. The annual lease is $26,400 and was recorded by debiting Prepaid Rent and crediting Cash. No adjusting entries have been prepared since June 1, 2016.
b. The Unearned Revenue account has an unadjusted balance of $8,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $4,800.
c. The company has not yet received a bill or paid for utilities for the month of December. The expense is estimated to be $3,360
d. On December 1, 2016, Badger Bagels received $6,000 cash from a customer related to a special order. The special order was delivered to the customer on December 29 but no entry has been made to record the delivery.
e. At December 31, 2016, employee wages of $9,200 have been incurred but not paid or recorded.
f. At December 31, 2016, $1,760 of interest has been incurred, but not yet paid or recorded.
g. Unrecorded depreciation on equipment is $11,200.

Question

Badger Bagels had the following separate situations occur during 2016.The company's accountant is preparing the annual financial statements at December 31, 2016 and has asked you to prepare the adjusting entries for each situation using the financial statement effects template.
a. On June 1, 2016, Badger Bagels paid the annual lease amount on its warehouse space. The annual lease is $26,400 and was recorded by debiting Prepaid Rent and crediting Cash. No adjusting entries have been prepared since June 1, 2016. 
b. The Unearned Revenue account has an unadjusted balance of $8,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $4,800.
c. The company has not yet received a bill or paid for utilities for the month of December. The expense is estimated to be $3,360
d. On December 1, 2016, Badger Bagels received $6,000 cash from a customer related to a special order. The special order was delivered to the customer on December 29 but no entry has been made to record the delivery. 
e. At December 31, 2016, employee wages of $9,200 have been incurred but not paid or recorded.
f. At December 31, 2016, $1,760 of interest has been incurred, but not yet paid or recorded.
g. Unrecorded depreciation on equipment is $11,200.

Quizplus · Accepted Answer

The Answer of Badger Bagels had the following separate situations occur during 2016.The company's accountant is preparing the annual financial statements at December 31, 2016 and has asked you to prepare the adjusting entries for each situation using the financial statement effects template.
a. On June 1, 2016, Badger Bagels paid the annual lease amount on its warehouse space. The annual lease is $26,400 and was recorded by debiting Prepaid Rent and crediting Cash. No adjusting entries have been prepared since June 1, 2016. 
b. The Unearned Revenue account has an unadjusted balance of $8,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $4,800.
c. The company has not yet received a bill or paid for utilities for the month of December. The expense is estimated to be $3,360
d. On December 1, 2016, Badger Bagels received $6,000 cash from a customer related to a special order. The special order was delivered to the customer on December 29 but no entry has been made to record the delivery. 
e. At December 31, 2016, employee wages of $9,200 have been incurred but not paid or recorded.
f. At December 31, 2016, $1,760 of interest has been incurred, but not yet paid or recorded.
g. Unrecorded depreciation on equipment is $11,200.

Badger Bagels Had the Following Separate Situations Occur During 2016