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Midterm Exam $($i$)$

$4$

$02$:$33$:$02$

$02$:$33$:$02$

$02$:$33$:$02$

Wedona Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January $31,2023,$ the following information was available for the preparation of the January $31,2023,$ month$-$end adjusting entries:

a$.$ Equipment purchased on November $1$ of this accounting period for $$33,600$ is estimated to have a useful life of $4$ years. After $4$ years of use, it is expected that the equipment will be scrapped due to technological obsolescence.

b$.$ Of the $$12,400$ balance in Unearned Consulting Revenue, $$9,700$ had been earned.

c$.$ The Prepaid Rent account showed a balance of $$16,500.$ This was paid on January $1$ of this accounting period and represents six months of rent commencing on the same date.

d$.$ Accrued wages at January $31$ totalled $$19,500.$

e$.$ One month of interest had accrued at the rate of $3\%$ per year on a $$62,000$ note payable.

f$.$ Unrecorded and uncollected consulting revenues at month$-$end were $$6,650.$

g$.$ A $$4,410$ insurance policy was purchased on April $1$ of the current accounting period and debited to the Prepaid Insurance account. Coverage began April $1$ for $18$ months.

h$.$ The monthly depreciation on the office furniture was $$675.$

i$.$ Repair revenues accrued at month$-$end totalled $$4,400.$

j$.$ The Store Supplies account had a balance of $$900$ at the beginning of January. During January, $$1,880$ of supplies were purchased and debited to the Store Supplies account. At month$-$end, a count of the supplies revealed a balance of $$750.$

Assume Wedona Energy uses the straight$-$line method to depreciate its assets and also assume December $31$ year end.

Required:

Prepare adjusting journal entries for the month ended January $31,2023,$ based on the above.

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