Question

Zavier Company must make three adjusting entries on December 31, 2016. a. Supplies used, $9,100; (supplies totaling $14,200 were purchased on December 1, 2016, and debited to the Supplies account). b. Expired insurance, 56,300 on December 1, 2016, the firm paid $37,800 for six months insurance coverage in advance and debited Prepaid Insurance for this amount. c. Depreciation expense for equipment, $3,900.TLES Prepare the journal entries for the above adjustments View transaction list Journal entry worksheet Prepare the adjusting entry for supplies.

Answer 1

1) The adjusting journal entries for the given transactions are shown as follows:-

Journal Entries (Amounts in $)

Date	General Journal	Debit	Credit
Dec 31, 2016	Supplies Expense	9,100
	Supplies		9,100
	(To record the adjusting entry for supplies)
Dec 31, 2016	Insurance Expense	6,300
	Prepaid Insurance		6,300
	(To record the adjusting entry for insurance)
Dec 31, 2016	Depreciation Expense-Equipment	3,900
	Accumulated Depreciation-Equipment		3,900
	(To record the adjusting entry for depreciation)

2) The posting of above adjusting journal entries to general ledger accounts is shown as follows:-

Supplies		Account No. 121			Prepaid Insurance		Account No. 131
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 1, 2016	14,200		14,200		Dec 1, 2016	37,800		37,800
Dec 31, 2016		9,100	5,100		Dec 31, 2016		6,300	31,500

Accumulated Depreciation-Equipment		Account No. 142			Depreciation Expense-Equipment		Account No. 517
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 31, 2016		3,900	3,900		Dec 31, 2016	3,900		3,900

Insurance Expense		Account No. 521			Supplies Expense		Account No. 523
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 31, 2016	6,300		6,300		Dec 31, 2016	9,100		9,100