Question

Desoto Company must make three adjusting entries on December 31, 2019. Supplies used, $10,600 (supplies totaling $17,200 were purchased on December 1, 2019, and debited to the Supplies account). Expired insurance, $7,800; on December 1, 2019, the firm paid $46,800 for six months’ insurance coverage in advance and debited Prepaid Insurance for this amount. Depreciation expense for equipment, $5,400. Required:

Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

This also needs the ledger

supplies

prepaid insurance

depreciation accumulated

depreciation expense

insurance expense

supplies expense

Answer 1

1) Adjusting journal entries:
S.No.	Acc Title	Debit $	Credit $
a	Supplies expenses	10600
	Supplies		10600
	(supplies expenses adjustment recorded)
b	Insurance expenses	7800
	Prepaid Insurance		7800
	(insurance expenses recorded)
c	Depreciation expenses	5400
	Accumulated Depreciation-Equipment		5400
	(depreciation on equipment recorded)

2) T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Supplies A/c
		Supplies exp.	10600
Supplies Expense A/c
Supplies	10600
Prepaid Insurance A/c
		Insurance expenses	7800
Insurance Expenses A/c
Prepaid Insurance	7800
Depreciation Expense A/c
Acc. Dep.- Equipment	5400
Accumulated Depreciation- Equipment A/c
		Depreciation	5400