Question

Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred.

1. The Supplies account shows a balance of $800, but a count of supplies reveals only $340 on hand.
2. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $550 in Insurance expense. A review of insurance policies reveals that $190 of insurance is unexpired.
3. Flint Hills employees work Monday through Friday, and salaries of $3,700 per week are paid each Friday. Flint Hills' year-end falls on Tuesday.
4. On December 31, 2021, Flint Hills received a utility bill for December electricity usage of $320 that will be paid in early January of 2022.

  
Required:
Prepare adjusting journal entries, as needed, for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

No.	Accounts Title   & Explanation	Debit	Credit
1	Supplies Expense                                          Dr	$460
	Supplies		$460
	(adjustment of   supplies 800 -340)
2	Prepaid   Insurance                                           Dr	$190
	Insurance Expense		$190
	(adjustment of   unexpired insurance)
3	Salaries Expense                                                 Dr	$1480
	Salaries Payable		$1480
	(salaries accrued for   the 2 days =3700 x2/5)
4	Utility Expense                                                    Dr	$320
	Utility Payable		$320
	(utility expense   accrued for electricity usage )

Answer 2

Answer:

Trans	Accounts Titles and Explanation	Debit ($)	Credit ($)
1	Supplies Expenses (800-340)	460
	Supplies		460
2	Prepaid Insurance	190
	Insurance Expenses		190
3	Salaries and wages expenses (3700*2/5)	1480
	Salaries and wages payable		1480
4	Utilities expense	320
	Accounts payable		320