Question

Record journal entries for the following adjustments using the accounts in the trial balance.

9 Account Title 10 Cash 11 Accts receivable 12 Notes Receivable 13 Allowance for Bad Debt 14 Merchandise inv. 15 Prepaid insurance 16 Store Supplies 17 Store equipment 18 Accum. deprec. 19 |Accounts payable 20 Joe Athlete, Capital 21 Joe Athlete, Drawing 22 Income From Sales 23 Purchases 24 Advertising exp. 25 Rent expense 26 Salaries exp. 27 Utilities exp. Dr. Cr. 17,150 127,010 15,000 1,270 47,964 7,450 2,370 30,000 3,000 12,420 105,572 14,400 455,400 192,900 7,950 30,000 79,840 5,628 577,662 577,662 29 Income summary 30 Supplies expense 31 Insurance expense 32 Bad Debt Expense 33 Interest Receivable 34 Depreciation exp. 35 Prepaid rent 36 Salaries payable 37 Interest Revenue 38 |Outside Labor Expense

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. a 2,020.00 Supplies Expense ($2370-$350) Store Supplies (To record adjusting entry for consumption of supplies) 2,020.00 b $ 2,483.00 Insurance Expense ($7450/6months x 2month) Prepaid Insurance (To record Expired portion of prepaid insurance) $ 2,483.00 с $ 6,831.00 Bad Debts Expense ($455400 x 1.5%) Allowance for Bad Debt || (To record adjusting entry for estimated bad debts) $ 6,831.00 d 100.00 Interest Receivable ($15000 x 8% x 1/12) Interest Revenue (To record accrued interest revenue) 100.00 $ 20,836.00 Merchandise Inventory ($68800-$47964) Income Summary (To record adjusting entry for physical count of inventory) 20,836.00

d 100.00 Interest Receivable ($15000 x 8% x 1/12) Interest Revenue (To record accrued interest revenue) 100.00 20,836.00 Merchandise Inventory ($68800-$47964) Income Summary |(To record adjusting entry for physical count of inventory) $ 20,836.00 $ 5,000.00 Depreciation Expense ($30000-$5000)/5 Accumulated Depreciation (To record adjusting entry for depreciation expense) 5,000.00 $ 4,000.00 Salaries Expense Salaries Payable (To record accrued salaries expense) 4,000.00 $ 2,000.00 Outside Labor Expense Outside Labor Expense Payable (To record accrued outside labor expenses) 2,000.00 1,500.00 Prepaid Rent Rent Expense |(To record adjusting entry for prepaid rent for next month) 1,500.00