Question

3) Record the December 31 adjusting entries for the following transactions and events in general journal form. Assume that December 31 is the end of the annual accounting period a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to date. Entry # Account Titles & explanationas Debits Credits 0 b. The Store Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand Entry # Account Titles & explanationas 13 2 Debits Credits 15 16 c. On November 1 of the current year, Rent Earned was credited for $1,500. This amount represented the rent earned for a three-month period beginning November 1 18 Entry # Account Titles & explanationas Debits Credits

Answer 1

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Solution: Ignore the explanation line in blue while putting answer in the question format: Naming Convention can be slighty different per question requirement ounal entries Account title and explanation Insurance Expense (2340/24)*3 Prepaid Insurance To record the adjustment of insurance expense) Store Supplies Expense Store Supplies To record the adjustment of supplies expense) Rent Earned Unrearned Rent Revenue To record the adjustment of unearned rent revenue) Depreciation Expense Accumulated Depreciation Store equipment To record the adjustment of depreciation) Salaries and Wages Expense Salaries and Wages Payable To record the adjustment of Accrued salaries) Debit Credit $ 293 Entry # S 293 b) (400-80) $ 320 $ 320 c) (1500/3) $ 500 S 500 d) $ 600 $ 600 e) $ 1,400 $ 1,400