Question

The ledger of Blue Spruce Corp.on July 31, 2022, indudes 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 21,500 3,600 230,000 $150,000 10,500 An analysis of the company's accounts shows the following, 1. The investment in the notes receivable earns interest at a rate of 6% per year. 2 Supplies on hand at the end of the month totaled $15.200 3. The balance in Prepaid Rent represents 4 months of rent costs. 4 Employees were owed $3,200 related to unpaid salaries and wages. 5. Depreciation on buildings is $3,840 per year,

Answer 1

Solution:
	Journal Entries
	Sr. No.	Date	Account Title and Explanation	Debit	Credit
	1	July . 31	Interest Receivable ($ 18,000 X 6%/12 Months)	$                             90
			Interest Revenue		$                              90
	2	July . 31	Supplies Expenses($ 21,500 -$ 15,200)	$                       6,300
			Supply		$                        6,300
	3	July . 31	Rent Expenses ($ 3,600 / 4 Months)	$                          900
			Prepaid Rent		$                            900
	4	July . 31	Salaries and Wages Expenses	$                       3,200
			Salaries and Wages Payable		$                        3,200
	5	July . 31	Depreciation Expenses ($ 3,840 / 12 Months)	$                          320
			Accumulated Depreciation - Building		$                            320
	6	July . 31	Unearned Revenue	$                       4,500
			Service Revenue		$                        4,500
	7	July . 31	Repair and maintenance Expenses	$                       2,200
			Account Payable		$                        2,200