Question

  MONTHEND JOURNAL ENTRIES:                  
1) Prepare the following monthend journal entries including explanations for Dec 31.                  
2) Post journal entries to the T-ACCOUNTS.                  
3) Then, click on the WORKSHEET tab, and enter the T-account balances in the Adjustments column.                  
                  
   Trans#              
   (a)   Office Supplies on hand at December 31 is $1,200.          
   (b)   Depreciation of Equipment for the month is $600.          
   (c)   One month insurance has expired.          
   (d)   Interest expense for the month but not recorded at December 31 is $90.          
   (e)   Service fees earned but were unbilled at December 31 is $800.          
   (f)   Salaries accrued but not paid at December 31 is $1,800.           

Smith Quality Automotive	Unadjusted TB
Account Names	Debit	Credit
Cash	73,160
Accounts Receivable	3,800
Office Supplies	2,600
Prepaid Insurance	2,100
Land	21,000
Equipment	14,000
Accounts Payable		1,800
Utilities Payable		320
Unearned Revenue		1,260
Notes Payable		30,000
Capital		75,000
Withdrawals	6,000
Service Revenue		20,800
Salaries expense	3,700
Rent expense	1,300
Utilities expense	320
Advertising expense	1,200
Totals	129,180	129,180

Answer 1

No Accounts Title Supplies Expenses Office Supplies (Supplies are used) b. Depreciation Expenses Accumulated Depreciation (Depreciation Expenses is recorded) Insurance Expenses Prepaid Insurance Insurance Expired for One month) Interest Expenses Prepaid Insurance 2,100 Insurance Expenses $ End.Bal Debit Credit Cash 2600-1200 Beg. Bal Beg. Bal 73,160 End.Bal $1,400 $73,160 a. 175 $1,400 $73,160 73,160 1,925 $ 2,100 2,100 600 Accounts Receivable Beg. Bal Service Revenue 3,800 End.Bal $4,600 $600 $ Insurance Expenses Prepaid Insurance $ 175 Income Summary $ 800 175 $ 4,600 -2100/12 175 $ 4,600 175 175 C. 175 Service Revenue Land Income Summary $ $20,800Beg. Bal $21,000 End.Bal d. 21,600 Beg. Bal $ 21,000 90 Interest payable Accounts Receivable $ $21,000 21,000 90 800 $21,600 Interest Expenses not recorded) 21,600 $ 800 Accounts Receivable Equipment $14,000 End.Bal е. Office Supplies 2,600 Supplies Expenses End.Bal Beg. Bal Service Revenue 800 $ 14,000 Beg. Bal (Service Revenue not recorded) Salaries Expenses Salaries payable (Salaries which are unpaid) $ 1,400 $14,000 14,000 f. $1,800 1,200 $1,800 $ 2,600 2,600 Accounts Payable 1,800 Beg. Bal End.Bal $ 1,800 Supplies Expenses 1,400Income Summary 1,800 1,800 Office Supplies $ 1,400 1,400 Interest Expenses 90 Income Summary 1,400 Interest payable $ 90 Interest payable $ 90 90 End.Bal 90 Interest Expenses 90 $ $ 90 90

Utilities payable 320 |Вeg. Bal Depreciation Expenses 600 Income Summary Accumulated Depreciation $ End.Bal $ 320 $ 600 $ $ 600 $ 320 320 600 Accumulated Depreciation Unearned Revenue 1,260 Beg. Bal 600 Depreciation Expenses End.Bal $1,260 End.Bal $ 600 1,260 $1,260 $ $ 600 600 Notes payable $30,000 |Вeg. Bal Сapital $75,000 Beg. Bal End.Bal End.Bal $30,000 $75,000 $75,000 $30,000 $30,000 $75,000 Salaries payable 1,800 Beg. Bal Withdrawals 6,000 End.Bal $ 6,000 End.Bal Beg. Bal $ 6,000 Salaries Expenses 1,800 6,000 $1,800 $1,800 Rent Expenses 1,300 Income Summary Salaries Expenses 3,700 Income Summary$ 5,500 Beg. Bal 1,300 Beg. Bal Salaries payable $1,300 1,300 1,800 Utilities Expenses 320 Income Summary 5,500 5,500 Beg. Bal $ $ 320 Advertising Expenses $1,200 Income Summary $ 320 320 $ 1,200 Beg. Bal $1,200 1.200