Question

1. Record the following adjusting entries to reflect the accrual and deferral of expense and revenue for the ending of December 31.

2.After you have journalized and posted the transactions, record the adjusting entries on the worksheet.

a - Recognized the interest income accumlated on $5,000 note bearing interest of 10% dated a month before the accounting period.

b- Interest expense incurred but not yet paid on the promissory note amounted to $50.

c- Recognized that the cleaning income which previously received but not yet earned 10% of $9000.

d- Accrued salaries for the last three days in the old year amounting to $1,500

e- Supplies used during the accounting period amounted to $300

f- Insurance records indicate that $800 of the insurance expired during the period.

General Journal Credit Date Account and Explanation Debit Tran#1 Interest Receivable Interest Income To recognize accrued interest income for a month Tran#2 Tran#3 Tran#4 Tran#5 Tran#6

Answer 1

Answer

Magic Clearing Co. Trial Balance 31-12-2020 Adjustment Debit Credit Income Statement Debit Credit Trial Balance Debit Credit $ 7,300.00 $ 1,000.00 Balance Sheet Debit Credit $ 7,300.00 $ 1,000.00 $ $ 120.00 $ 10,800.00 $ 1,000.00 $ 15,300.00 $ 300.00 Cash Accounts Receivable Interest Receivable Supplies Equipment Accounts Payable Owner's Equity Clearing Revenue Rent Expense Salaries Expense Laundry Expense Utilities Expense $ 420.00 $ 10,800.00 $ 1,000.00 $ 15,300.00 $ 9,000.00 $ 900.00 $ 9,900.00 $ 3,000.00 $ 2,500.00 $ 180.00 $ 100.00 $ 1,500.00 $ $ $ $ 3,000.00 4,000.00 180.00 100.00 $ 25,300.00 $ 25,300.00 41.67 $ $ 50.00 300.00 41.67 $ $ $ $ 1,500.00 $ $ 50.00 $ 300.00 Interest Income Interest Expense Supplies Expense Salaries payable Insurance Expense Unearned Service Revenue Interest Receivable Insurance Payable Interest Payable $ 1,500.00 $ $ $ 800.00 900.00 41.67 800.00 $ $ 41.67$ $ 900.00 $ $ 800.00 $ $ 50.00 $ $ $ 800.00 50.00 Net Income $ $ $ 3,591.67 $ 3,591.67$ 1,470.00 $ 1,470.00 9,941.67 $ 9,941.67 $ 20,120.00 $ 20,120.00

Credit Date Tran#1 General Journal Account Titles and Explanation Interest Receivable A/c...Dr To Interest IncomeA/c To recognize accrued interest income for a month Debit $ 42 =5000*10%*1/12 $ 42 Tran#2 $ 50 Interest Expense A/c...Dr To Interest Payable Alc To recognize accrued interest incurred $ 50 Tran#3 $ 900 =10% *9000 Unearned Service Revenue Alc Dr To Cleaning Revenue Alc To recognize Cleaning Revenuereceived previously $ 900 Tran#4 $ 1,500 Salaries Expense A/c...Dr To Salaries Payable Alc To accrue Salaries expense $ 1,500 Tran#5 300 =38400*6%*1/12 Supplies Expense Alc...Dr To Supplies Alc To use Supplies $ 300 Tran#6 $ 800 Insurance Expense A/c...Dr To Insurance Payable Alc To record Insurance expired during the year $ 800

..