Question

adjusting entries

1-7

TULEM 1. propale adjusting entries. Transaction number Problem Jackson paid 3,000 for 3 months of rent in advance on November 30,2011. What entry should be made on 12/31/11 On 12/31/11 Supplies showed a balance of 100,000. This did not include a purchase of additional supplies for $45,000. A count of supplies on hand showed an amount of $ 35,700 Depreciation on equipment for the year totaled 120.000. As of 12/31/11 the company owed employees 14500 in salaries. Jackson purchased a 30-month insurance policy for 69,000 on March 30,2011. No adjusting entry had been made as of 12/31/11. Jackson sold $340,000 worth of products on June 1, 2011. As of 12/31/11 $200,000 had been earned Jackson borrowed $60,000 from the bank on November 1, 2011. The loan was for six months at 8%.

Answer 1

Transaction	Account Titles	Debit	Credit
		$	$
1.	Rent Expense ( $ 3,000 / 3 * 2 )	2,000
	Prepaid Rent		2,000
2.a.	Supplies	45,000
	Cash		45,000
b.	Supplies Expense	109,300
	Supplies		109,300
3.	Depreciation Expense	120,000
	Accumulated Depreciation: Equipment		120,000
4.	Salaries Expense	14,500
	Salaries Payable		14,500
5.	Insurance Expense ( $ 69,000 / 30 * 9 )	20,700
	Prepaid Insurance		20,700
6.	Accounts Receivable	200,000
	Sales Revenue		200,000
7.	Interest Expense ( $ 60,000 x 8 % x 2/12 )	800
	Interest Payable		800