Question

prepare the adjusting enteries at July 31 assuming that adjusting entries are made monthly.

Cupei 4 Homework Dunia+2980608-3a1a-4735-9656-1819bcd0abc Question 4 of 6 < > Current Attempt in Progress The ledger of Pina Colada Corp. on July 31, 2022, includes the selected accounts below before adjusting entries have been prepared. Credit Investment in Note Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation--Buildings Unearned Service Revenue Debit $18,000 22,500 5,400 210,000 $135,000 11,100 An analysis of the company's accounts shows the following. 1. 2. 3. 4. The investment in the notes receivable earns interest at a rate of 12% per year. Supplies on hand at the end of the month totaled $17,600. The balance in Prepaid Rent represents 4 months of rent costs. Employees were owed $2,800 related to unpaid salaries and wages. Depreciation on buildings is $6,360 per year. During the month, the company satisfied obligations worth $4,500 related to the Unearned Services Revenue. Unpaid maintenance and repairs costs were $2,100. 5. 6. 7.

Answer 1

Adjusting Entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Interest receivable (18,000*12%*1/12)	180
	Interest revenue				180
.	(for interest earned)
b.	Supplies expense (22500-17600)		4900
	Supplies				4900
	(for supplies used)
c.	Rent expenses (5400*1/4)		1350
	Prepaid rent account			1350
	(for prepaid rent expired)
d.	Salaries and wages expenses		2800
	Salaries and wages payable			2800
	(for salaries and wages due and unpaid)
e.	Depreciation expenses (6360*1/12)	530
	Accumulated depreciation			530
	(for depreciation charged)
f.	Unearned service revenue		4500
	Service revenue				4500
	(for revenue earned)
g.	Maintenance and repairs expenses	2100
	Accounts payable				2100
	(for unpaid expenses)