Question

a. c. E3-3B. Adjusting Entries For each of the following unrelated situations, prepare the necessary adjusting entry in general journal form: Unrecorded depreciation on equipment is $1,850. b. The Supplies account has a balance of $5,000. Supplies on hand at the end of the period total $2.500. On the date for preparing financial statements, an estimated utilities expense of $550 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2.800 debit to Prepaid Rent and a $2,800 credit to Cash. Monthly statements are now being prepared. Nine months ago, Macke Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Unearned Premium Revenue for $624. No adjusting entries have been prepared during the nine-month period. Annual finan- cial statements are now being prepared. f. At the end of the accounting period, employee wages of $700 have been incurred but not paid. At the end of the accounting period, $800 of interest has been earned but not yet received on notes receivable that are held. e. 8.

Answer 1

Transaction	General Journal	Debit	Credit
a	Depreciation expense	$1,850
	Accumulated depreciation- Equipment		$1,850
	( To record depreciation expense)
b.	Supplies expense	$2,500
	Supplies		$2,500
	( To record supplies expense)
c.	Utilities expense	$550
	Accounts payable		$550
	( To record utilities expense)
d.	Rent expense	$700
	Prepaid rent		$700
	( To record rent expense)
e.	Unearned premium revenue	$468
	Premium revenue		$468
	( To record unearned premium revenue earned)
f.	Wages expense	$700
	Wages payable		$700
	( To record wages expense)
g.	Interest receivable	$800
	Interest revenue		$800
	( To record interest revenue)

b.

Supplies expense = Unadjusted supplies - Ending supplies

= 5,000-2,500

= $2,500

d.

Rent expense for 4 months = $2,800

Rent expense for 1 month = 2,800 x 1/4

= $700

e.

Premium revenue for 12 months = $624

Premium revenue for 9 months = 624 x 9/12

= $468

Kindly comment if you need further assistance. Thanks‼!