Question

Prepare year-end adjusting entries for the following transactions and write your journal entries in good form in the spaces provided below.

1. Accrued interest on notes payable is $45.

2. $1,500 of unearned revenues previously recorded during year have all been earned.

3. Depreciation on equipment totaled $7,500 for the year.

4. Supplies purchased totaled $850 during the year. By year end, only $275 of supplies remained.

5. Salaries accrued and owed to employees (and not yet paid) at the end of the year totaled $760.

Answer 1

Date Credit Debit 45 1 $ 45 2 1,500 $ 1,500 3 Journal Entries Accounts Interest Expense $ Interest Payable (To record interest accrued on Notes payable) Unearned Revenue $ Revenue (To recognize revenue) Depreciation Expense $ Accumulated Depreciation (To record Depreciation on equipment) Supplies Expense $ Supplies (To record supplies used) Salaries Expense $ Salaries Payable (To record Salaries payable ) 7,500 $ 7,500 4 575 $ 575 5 760 $ 760

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