Question

6. At the beginning of the period, a company reports a balance in office supplies of $500. During the period, the company purchases an additional $3,500 of office supplies for cash. By the end of the period, only $700 of office supplies remains.

RECORD THE PERIOD END ADJUSTING ENTRY

7.A company purchases one year of flood insurance in advance on May 1, paying $24,000 ($2,000/month).

Record the adjusting entry on December 31.

• Record the adjusting entry on December 31.

Note: Enter debits before credits.

	Date General Journal Debit Credit December 31

12. A company lends $30,000 with 10% interest on May 1, 2021. This amount plus interest is due on April 30, 2022.

Record the adjusting entry on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Answer 1

Credit Debit $ 3,300 Transaction General Journal 6 Office Supplies Expense Office Supplies (Being office supplies expenses recorded) $ 3,300 $ 16,000 Insurance Expense Prepaid Insurance (Being insurance expenses recorded) $ 16,000 12 $ 2,000 Interest expense Interest Payable (Being Interest expenses recorded) $ 2,000 Notes: Office Supplies Expense = $500+$3,500-$700 = $3,300 Insurance Expense = 24,000*8/12 = $16,000 Interest Expense = $30,000*10%*8/12 = $2,000