Question

1. Atlas Company's Store Supplies account had a beginning balance of $780. Throughout the year the company purchased $1,500 in supplies. A physical count of the supplies showed $525 of unused supplies available as of December 31, 2015. Prepare the required adjusting entry. 2. You have the following insurance policies:

1. Atlas Company's Store Supplies account had a beginning balance of $780. Throughout the year the company purchased $1,500 in supplies. A physical count of the supplies showed $525 of unused supplies available as of December 31, 2015. Prepare the required adjusting entry. 2. You have the following insurance policies: Amount Purchase Date Jan 1, 2013 Aug 1,2014 Sep 1,2015 $2,400 $3,600 $1,920 4 yrs 3 yrs 2 Vrs The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) Prepare the adjusting journal entry for December 31, 2015. 3. You sold tickets for 2 different concert series as summarized below: Number of Number of Concerts in Ticket Sales Concerts in Series Series remaining at mount Received December 31, 2015 2 when sold $4,500,000 S3,500,000 April 1, 2015 Sep 1. 2015 When you sold the tickets it was recorded in Unearned Concert Revenue. Prepare the required adjusting entry at December 31, 2015. 4. You made the following loans to two of your employees: Total Interest on Loan Loan Name Amount Loan Date Period John Q $1,500 1 July 2015 15 months Alex Z $2,500 1 Oct 2015 12 months $120 $90 Prepare the required adjusting entry for accrued interest on December 31, 2015.

Answer 1

date	explanation	debit	credit
1-	supplies expense	1755
	supplies		1755
	supplies expense during the year	(1500+780)-525
2-	insurance expense	3920
	prepaid insurance		3920
	insurance expense	2400+(3600/36)*12 +(1920/24)*4	3920
3-	unearned revenue	5000000
	revenue earned		5000000
	revenue earned	(4500000/9)*7 +(3500000/7)*3	5000000
4-	accrued interest	66
	interest earned		66
	interest earned	(90/15)*6 +(120/12)*3	66