Question

Prepare the adjusting journal entries for the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Supplies for office use were purchased during the year for $740, of which $220 remained on hand (unused) at year-end. 2. Interest of $370 on a note receivable was eamed at year-end, although collection of the interest is not due until the following year. 3. At year-end, salaries and wages payable of $4.800 had not been recorded or paid. 4. At year-end, one-half of a $3,200 advertising project had been completed for a client, but nothing had been billed or collected. 5. Redeemed a gift card for $720 of services. View transaction list Journal entry worksheet < 1 2 3 4 5 Record the entry for supplies used during the year. Note: Enter debits before credits. Transaction General Journal Dabit Credit Record entry Clear entry View general journal

Answer 1

Solution:

Adjusting Journal Entries
Date	Particulars	Debit	Credit
1)	Supplies expense Dr ($740 - $220)	$520
	To Supplies		$520
2)	Interest Receivable	$370
	To Interest Revenue		$370
3)	Salaries and wages Expense Dr	$4,800
	To Salaries and wages Payable		$4,800
4)	Accounts Receivable Dr ($3200/2)	$1,600
	To Service Revenue		$1,600
5)	Unearned Revenue Dr	$720
	To Service Revenue		$720