Question

Question 2 View Policies Current Attempt in Progress Oriole Company has the following balances in selected accounts on December 31, 2020. $0 6,000 Accounts Receivable Accumulated Depreciation Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue 10.000 1.800 10 2.200 32.000 All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Oriole Company borrowed 59.700 by signing a 9% one-year note on September 1, 2020. A count of supplies on December 31, 2020. indicates that supplies of $800 are on hand Depreciation on the equipment for 2020 is $2.000.

prepare adjusting entries for the seven items described above.

Answer 1

Credit Debit 291 $ $ 291 2 $ 1400 $ 1,400 $ 2,000 $ 2,000 | No. Account Titles and Explanation 1 Interest expense ($9,700 X 9% X 4/12) Interest payable Supplies expense ($2,200 - $800) Supplies Depreciation expense Accumulated Depreciation-Equipment 4 Insurance expense ($1,800 X 7/12) Prepaid Insurance 5 Unearned Service Revenue ($32,000 X 1/4) Service Revenue 6 Accounts Receivable Service Revenue 7 Salaries and wages expense ($5,700 X 3/5) Salaries and wages payable $ 1,050 $ 1,050 $ 8,000 $ 8,000 $ 3,500 $ 3,500 $ 3,420 $ 3,420