Question

December 31 View transaction list Journal entry worksheet < 0 2 3 4 5 6 Depreciation on the company's equipment for the year is $10,120. Note: Enter debits before credits. Transaction General Journal Credit Debit 10,120 10,120 Record entry Clear entry View general journal

Answer 1

Journal Entries for the year ended 31st December:-

Debit Credit

(a) Depreciation on Equipment $10,120

Equipment Account $10,120

(b) Cash / Bank Account $ 5618

Sales/ Revenue $ 5618

Note:-

Opening Supplies $ 320

Add:- Purchases during December   $ 5942

$ 6262

Less:- Closing Supplies $ 644

Balance(Treated as Sales/ revenue generated from supplies sold) $ 5618

(c) Insurance Expense Account $ 2000

Prepaid Insurance $2000

(Opening Prepaid Insurance- Closing Prepaid Insurance= Insurance expense for the period)

(d) Interest Receivable Account $ 950

Interest Income Account $ 950

(Since Interest will be received after 10 days of closing hence amount booked)

(e) Interest Expense Account $ 2500

Interest Payable Account $ 2500

(Since interest payable is after closing of year end, hence expense amount is booked)