Question

Nike Exxon Royal Dow (NERD) Corporation sells pasta to grocery chains under several private label brand names. NERD Corp.'s reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Credits Debita 34,000 42,200 2,600 62,200 22,200 2,400 7,100 88,800 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 33,300 33,200 0 52,200 0 3,100 74.300 34,000 6,200 157,000 0 81,000 20,000 12,100 . o 2,200 4.100 387,100 387,100 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,100. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through

Answer 1

No.	Journal			Debit	Credit		Calculations
1	Depreciation Exp A/c Dr.	11,100
	To Accumulated Depreciation A/c	11,100
	( Being depreciation on Office equipment accounted for the year . )
2	Salaries Expenses A/c Dr.	1,400
	To Salaries Payable A/c		1,400
	( Being outstanding salaries accounted for )
3	Interest Expense A/c   Dr.	1,566			52,200*3/12*12%
	To Interest Payable A/c		1,566
	( Being Interest payable on notes accounted for )
4	Interest Recivable A/c    Dr.	1,665			22200*10/12*9%
	To Interest Revenue A/c		1,665
	( Being Interest receivable on money lent accounted for )
5	Insurance Expense A/c     Dr.	2,663			7100*9/24
	To Prepaid Insurance A/c		2,663
	( Being fire insurance paid wrongly debited to Prepaid for 9 months. )
6	Supplies A/c Dr.		900
	To Supplies Expense A/c		900
	( Being supplies inventory accounted for )
7	Deferred Sales Revenue A/c	1,900
	To Sales Revenue A/c		1,900
	( Being Sales credited to deferred sales revenue wrongly )
8	Rent Expense A/c Dr.	1,200
	To Prepaid Rent A/c			1,200
	( Being rent paid wrongly accounted to prepaid for Dec 21 . )