Question

Adjusting Entries For each of the following unrelated situations, prepare the necessary adjusting entry in general journal form a. Unrecorded depreciation on equipment is $1850 b. The Supplies account has a balance of $5,000. Supplies on hand at the end of the period totaled $2,500, c On the date for preparing financial statements, an estimated utilities expense of $550 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash. Monthly statements are now being prepared e. Nine months ago, Macke insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for 5624 and crediting Unearned Premium Revenue $624. No adjusting entries have been prepared during the nine-month period. Annual financial statements are now being prepared f. At the end of the accounting period, employee wages of $700 have been incurred but not paid. At the end of the accounting period, 5800 of interest has been earned but not yet received on notes receivable that are held

Answer 1

1. Journal Entries -

Date Credit a Journal Entries Accounts Title Debit Depreciation Expenses $ 1,850 Accumulated Depreciation (Being Depreciation incurred on assets) $ 1,850 b Supplies Expense $ 2,500 Supplies (Being Supplies Utilised) $ 2,500 с Utilities Expense $ 550 Utilities Payable (Being utilities expense incurred) $ 550 d Rent Expense $ 700 Prepaid Rent (Being Rent Expense incurred) $ 700 Unearned Premium Revenue $ 624 Premium Revenue (Being Premium Revenue Earned) $ 624 f Wages Expense $ 700 Wages Payable (Being Wages Expense accrued) $ 700 Interest Receivable $ 800 Interest Revenue $ (Being Interest Revenue Earned but not received) 800