Question

edugen.wileyplus.com Kimmel, Accounting, 7e Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Exercise 4-12 The ledger of Sheffield Corp. on July 31, 2022, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note Receivable $18,000 Supplies 24,000 Prepaid Rent Buildings 270,000 Accumulated Depreciation-Buildings $135,000 Unearned Service Revenue 11,000 3,400 An analysis of the company's accounts shows the following 1. 2. 3. 4. 5. 6. 7. The investment in the notes receivable earns interest at a rate of 12% per year. Supplies on hand at the end of the month totaled $17,800. The balance in Prepaid Rent represents 4 months of rent costs Employees were owed $3,200 related to unpaid salaries and wages. Depreciation on buildings is $4,320 per year. During the month, the company satisfied obligations worth $4,600 related to the Unearned Services Revenue. Unpaid maintenance and repairs costs were $2,000. Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. July 31

Answer 1

Solution:

Journal Entries - Sheffield Corp.
Date	Particulars	Debit	Credit
31-Jul-22	Interest receivables Dr	$180.00
	To Interest revenue		$180.00
	(To record interest revenue)
31-Jul-22	Supplies expense Dr	$6,200.00
	To Supplies		$6,200.00
	(To record supplies expense)
31-Jul-22	Rent expense Dr	$850.00
	To Prepaid rent		$850.00
	(To record rent expense)
31-Jul-22	Salaries and wages expense Dr	$3,200.00
	To Salaries and Wages payable		$3,200.00
	(To record salaries and wages expense)
31-Jul-22	Depreciation expense Dr	$4,320.00
	To Accumulated depreciation - Building		$4,320.00
	(To record depreciation expense)
31-Jul-22	Unearned service revenue Dr	$4,600.00
	To Service revenue		$4,600.00
	(To record service revenue)
31-Jul-22	Repair and maintenance expense Dr	$2,000.00
	To Repair and maintenance payable		$2,000.00
	(To record repair and maintenance expense)