Question

Problem 5-86 Read the description of following adjustments that are required at the end of the accounting period for Drake Consulting Services Determine the account and amount to be debited and the account and amount to be credited. A. Prepaid rent for one year on January 1, 2019, in the amount of $91,080. Record the adjustment on January 31, 2019 B. Purchased supplies for $4,000 on January 1, 2019. The inventory of supplies was $1880 on January 31, 2019. Record the adjustment for the amount of the supplies that were used during the month of January 2019. C. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $28,800 has an estimated useful life of 16 years with no salvage value. Record the adjustment on January 31, 2019. D. Signed a 12-month contract for $4,320 of prepaid advertising on January 1, 2019. Record the adjustment for the amount of the advertising contract that expired during the month of January 2019 View transaction list Journal entry worksheet 1 2 3 4 Prepaid rent for one year on January 1, 2019, in the amount of $91,080. Record the adjustment on January 31, 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Jan 31	Rent expense (91080/12)	7590
	Prepaid rent		7590
Jan 31	Supplies expense (4000-1880)	2120
	Supplies		2120
Jan 31	Depreciation expense (28800/16)/12	150
	Accumulated depreciation-equipment		150
Jan 31	Advertising expense (4320/12)	360
	Prepaid advertising		360