Question

SIGN, SU She has asked you to record the following adjusting entries, so she can issue her year-end financial statements. Alice's vear end is July 31, 2017 for all transactions. Her chart of accounts is listed below. Chart of accounts 101 102 103 106 107 200 201 202 203 300 400 Cash Accounts receivable Supplies equipment Accumulated depreciation, equipment Prepaid rent Prepaid insurance Unearned revenue Salaries payable wages payable Accounts payable Capital Sales Depreciation expense Rent expense Insurance expense Supplies expense Wage expense 503 504 Using the chart above record the year end adjusting entries for each transaction below: 1. A count of supplies on hand at 7/31/2017 showed an inventory balance of $33,000. Alice's inventory records showed a balance of $96,900 as of that same date. This balance did not include additional supplies totaling 50,000 that had been purchased earlier in the year. 2. Alice borrowed 75,000 from Fairview Bank on August 30,2016. The annual interest rate was 8%. The loan was for 10 months with principla and interest due at maturity. As of July 31, 2017, no entries regarding the loan had been made.

Answer 1

Adjustment Entry 1)Dr Supplies A/c 50000 Cr Supplies Expense A/c 50000.

Adjustment Entry 2) Dr Cash A/c 75000 Cr Capital A/c 75000

Adjustment Entry 3) Dr Accumulated Depreciation A/c 4800 Cr Equipmemt A/c 4800

Adjusent Entry 4) Dr Insurance Expense A/c 25000 Dr prepaid rent a/c 35000 Cr Cash A/c 60000

Adjustment Entry 5) Dr Wages Expense 9100 Cr Cash 4550 Cr wages payable a/c 4500.

Adjustment Entry 6) Dr Rent Expense 9200 Dr Prepaid Rent 4600 Cr Cash 13800