Question

Calibri (Cuer... 11 A- A Ajustar texto Combinar y centrar NK egar A S • X v fx с Adjusting Journal Entries Using the information provided make the ADJUSTING entry that is necessary. Adjusting entries are made at the end of an accounting period. 1 The supplies account has a balance of $300. A count of supplies on hand shows $100. 7 8 9 10 2. At the end of the current period $500 of fees have been earned but no bills have been sent to clients. 12 13 14 3 Prepaid insurance was debited on October 1 for $600 which is the annual premium. The end of the accounting period is December 31 4 Salaries are paid every Friday. The five day week salary expense is $1,000. The accounting period ends on a Wednesday, December 31. Show the journal entry for the expense on December 31 and the Journal entry for January 2. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 The company borrowed $10,000 from the bank at 6% interest on November 1. The loan is to be repaid in one year The end of the accounting period is December 31. Write the adjusting entry for the interest for 2 months 6 The estimated amount of depreciation on equipment for the current period is $700. 36 37 32 40 42 44 Ad Journal Entries Ad Journal Entries solution The Adjusting Process Adjusting Process Solu Listo

Answer 1

39 Debit Credit 40 200 Date Account Title & Explanation 31-Dec Supplies expense (300 - 100) Supplies (To record supplies consumed during the Year) 41 200 42 43 44 500 31-Dec Accounts receivable Fees Earned (To record fees earned during the year) 45 46 47 500 150 48 49 31-Dec Insurance expense (600/12*3) Prepaid insurance (To record expired insurance) 150 50 51 52 600 53 31-Dec Salaries Expense (1000/5*3) Salaries Payable ((To record accrued salaries & wages) 600 54 55 56 600 57 400 02-Jan Salaries Payable Salaries expense Cash (To record payment of salaries) 58 1000 59

61 100 62 31-Dec Interest Expense (10000*6%*2/12) Interest Payable (To record accrued interest expense) 100 63 64 65 700 66 31-Dec Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation expense) 700 67 68 69