Question

Need help solving these problems:

O P Q R S T U M N Required: 1. Analyze the differences between the unadjusted and adjusted trial balances to determine the adjustments that likely were made. Show the results of your analysis by preparing the journal entries that were macie 2. Explain why each adjusting journal entry needs to be made. You should have an explanation for each adjusting entry 3. Explain the importance of the revenue recognition and expense recognition principles GENERAL JOURNAL L Account Titles and Explanation Debit Credit 7 Cash 8 Office supplies 9 Prepaid insurance 10 Office equipment 11 Accum. Depreciation Office equip 12 Accounts payable 13 Interest payable 14 Salaries payable 15 Unearned consulting foos 16 Long-term notes payable 17 Common Stock 19 Dividends 19 Consulling fees earned 20 Depreciation expense-Office equip 21 Salarios expense 22 Interest expense 23 Insurance expense 24 Rent expense 25 Office supplios expense 26 Advertising expense 27 Totals Unadjusted Trial Balance $116,000 23,000 14,000 18,000 o 24,000 11,100 0 32,000 56.0001 52.000 11,000 103,200 ol 67.000 T 1.300l Adjusted Trial Balance $116,000 10.00 6,300 18,000 1,800 30,000 14.000 22.000 14,000 56,000 52.000 11.000 121.200 O 15,000 99.0001 4.2001 7.700 15.0001 13.0001 19.0001 $311.000 ol 13,000 $278,300 $278,300 $311,000 Requirements and Answers for 1. Answers for 2. and 3. + Enter E -.

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the adjustments that likely were made. Show the results of your analysis by preparing the journal entries that were made.

2. Explain why each adjusting journal entry needs to be made. You should have an explanation for each adjusting entry

3. Explain the importance of the revenue recognition and expense recognition principles.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

First we will calculate adjustment amount. Then we will make adjustment entries.

Event	Workings for adjustment entries	Amount $
1	Unadjusted Supplies	23,000.00
	Less: Adjusted Supplies	10,000.00
	Supplies expense	13,000.00
2	Unadjusted Prepaid Insurance	14,000.00
	Less: Adjusted Prepaid Insurance	6,300.00
	Prepaid Insurance expense	7,700.00
3	Adjusted Accumulated Deprecation- Office Equipment	1,800.00
	Less: Unadjusted Accumulated Deprecation- Office Equipment	-
	Deprecation Expense- Office Equipment	1,800.00
4	Adjusted Accounts Payable	30,000.00
	Less: Unadjusted Accounts Payable	24,000.00
	Advertising Expense	6,000.00
5	Adjusted Interest Payable	14,000.00
	Less: Unadjusted Interest Payable	11,100.00
	Interest Expense	2,900.00
6	Adjusted Salary Payable	22,000.00
	Less: Unadjusted Salary Payable	-
	Salary Expense	22,000.00
7	Unadjusted Unearned Fees	32,000.00
	Less: Adjusted Unearned Fees	14,000.00
	Fees earned	18,000.00

Event	Account	Debit $	Credit $
1	Supplies Expense	13,000.00
	Supplies		13,000.00
	(being supplies used)
2	Insurance expense	7,700.00
	Prepaid Insurance		7,700.00
	(being Prepaid Insurance expired)
3	Depreciation expense- Office Equipment	1,800.00
	Accumulated Depreciation- Office Equipment		1,800.00
	(being Depreciation charged to Office Equipment)
4	Advertising Expense	6,000.00
	Accounts Payable		6,000.00
	(being liability for advertising expense created)
5	Interest Expense	2,900.00
	Interest payable		2,900.00
	(being liability for Interest Expense created)
6	Salaries expense	22,000.00
	Salaries payable		22,000.00
	(being liability for Salaries expense created)
7	Unearned Fees	18,000.00
	Fees earned		18,000.00
	(being Unearned Fees earned )