Question

Prepare year-end adjusting entries for the following transactions (clearly show the account name, the debit, and credit! However, yo entry): a) Accrued interest on notes receivable is $495. u do not need to provide further descriptions for each journal b) Unearned revenues received totaled $4,500 c) Three years' rent, totalling $24,000, was paid in advance at the beginning of the current year. d) Services totalling $3,490 were performed but not yet billed at the end of the year. e) Depreciation on equipment totalled $2,700 for the year. f) Supplies for use totalled $540. By year end, only $100 in supplies remained. g) Salaries owed to employees at the end of the year total $2,200.

Answer 1

	General Journal	Debit	Credit
a)	Interest Receivable	$495
	Interest Revenue		$495
b)	Unearned Service Revenue	$4,500
	Service Revenue		$4,500
c)	Rent Expense($24,000 / 3)	$8,000
	Prepaid Rent		$8,000
d)	Accounts Receivable	$3,490
	Service Revenue		$3,490
e)	Depreciation Expense	$2,700
	Accumulated Depreciation—Equipment		$2,700
f)	Supplies Expense($540 - $100)	$440
	Supplies		$440
g)	Salaries and Wages Expense	$2,200
	Salaries and Wages Payable		$2,200