Question

Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) 1. 2. 3. 4. 5. Depreciation on equipment is $1,396 for the accounting period. Interest owed on a loan but not paid or recorded is $292. There was no beginning balance of supplies and $572 of office supplies were purchased during the period. At the end of the period $104 of supplies were on hand. Prepaid rent had a $1,040 normal balance prior to adjustment. By year end $728 had expired. Accrued salaries at the end of the period amounted to $936. No. Account Titles and Explanation Debit Credit 1. Depreciation Expense 1396 Accumulated Depreciation Equipment 1396 2. Interest Expense Interest Payable 292 3. Supplies Expense Supplies

Answer 1

No	Account Titles and Explanation	Debit	Credit
1	Depreciation Expense	1,396
	Accumulated Depreciation - Equipment		1,396
2	Interest Expense	292
	Interest Payable		292
3	Supplies Expense	468
	Supplies		468
	($572 - $104)
4	Rent Expense	728
	Prepaid Rent		728
5	Salaries Expense	936
	Salaries Payable		936