Question

sert Text Table Chart incomestatement Shape Media Comment retained earnings Transactions generaljournal worksheet balancesheet Using the general journal worksheet tab prepare the adjusting journal entries based on the following transactions Transactions 1 Incurred $1000 of insurance expense at 12/31 prepaid insurance account was set up in October Account Number 1 103 107 108 112 121 151 2 incurred $4000 of rent expense at 12/31 prepaid rent account was set up in November Chart of Accounts Account Name Accounts Receivable Supplies on Hand Prepaid Insurance Prepaid Rent Interest Receivable Accumulated Depreciation Salaries Payable Uneamed Service Fee Service Revenue Interest Revenue Salaries Expense Insurance Expense Rent Expense Supplies Expense Depreciation Expense 206 216 3 Used $1500 of supplies by 12/31 supplies on hand was set up in July 418 507 512 515 4 Calculated $4000 of depreciation expense 518 521 5 Earned 515000 of service revenue at 12/31 unearned service revenue was previously set up 6 Earned interest income of $500 but money has not been received at 12/31 7 Services of $5000 was earned but not received at 12/31 8 Employees earned salaries of $2500 but It will not be paid until the following year.

Answer 1

Journal Entries Date Account Title and Explaination Debit Post. Ref. Credit (S) 1,000.00 Insurance Expense Prepaid Insurance (To record expired portion of prepaid insurance) $ 1,000.00 4,000.00 Rent Expense Prepaid Rent (To record expensed portion of prepaid rent) 4,000.00 3 1,500.00 Supplies Expense Supplies (To record consumption of Supplies) $ 1,500.00 4,000.00 Depreciation Expense Accumulated Depreciation (To record Depreciation Expense) $ 4,000.00 $ 15,000.00 Unearned Service Revenue Service Revenue (To record Service Revenue earned) $ 15,000.00

500.00 Interest Receivable Interest Income |(To record Interest revenue earned) 500.00 5,000.00 Accounts Receivable Service Revenue (To record Service Revenue earned) 5,000.00 $ 2,500.00 Salaries Expense Salaries Payable (To record Salaries Expense earned by employees) S 2,500.00