Question

- View Policies Current Attempt in Progress The ledger of Kingbird, Inc. on July 31, 2022, includes the following selected accounts before adjusting entries have been prepared. Credit Supplies Prepaid Rent Buildings Accumulated Depreciation-Buildings Unearned Service Revenue Debit $ 28,320 4.248 295,000 $165.200 13,570 An analysis of the company's accounts shows the following. 1. 2. 3. 4. 5. 6. Supplies on hand at the end of the month totaled $21,948. The balance in Prepaid Rent represents 4 months of rent costs. Employees were owed $3,658 related to unpaid and unrecorded salaries and wages. Depreciation on buildings is $7,080 per year. During the month, the company satisfied obligations worth $5,546 related to the Unearned Services Revenue. Unpaid and unrecorded maintenance and repairs costs were $2.714. Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Credit No. 1 Adjusting Entries Date Account title July 31 Supplies Expense Supplies (To record the supplies expense) [$28,320-$21,948] Debit 6,372 $ $ 6,372 2 $ 1,062 July 31 Rent Expense Prepaid Rent (To record the rent expenses) [$4,248/4*1 month] $ 1,062 3 $ 3,658 July 31 Salaries and Wages Expense Salaries and Wages Payable (To record the accrued salaries expense) $ 3,658 4 $ 590 July 31 Depreciation Expense Accumulated Depreciation-Buildings (To record the depreciation expense) [$7,080/12 * 1 month] $ 590 5 5,546 July 31 Unearned Service Revenue Service Revenue (To record service rendered) $ 5,546 6 $ 2,714 July 31 Maintenance and repairs Expense Accounts Payable (To record maintenance and repairs cost) $ 2,714

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