Question

Desoto Company must make three adjusting entries on December 31, 2019.

1. Supplies used, $9,100 (supplies totaling $14,200 were purchased on December 1, 2019, and debited to the Supplies account).
2. Expired insurance, $6,300; on December 1, 2019, the firm paid $37,800 for six months’ insurance coverage in advance and debited Prepaid Insurance for this amount.
3. Depreciation expense for equipment, $3,900.

Required:
Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

Answer 1

Adjusting entries: DEBIT OPTIION ACCOUNT TITLES AND EXPLANATION CREDIT [Given] $9,100 a) Supplies Expense $9,100 Supplies (To record supplies used during the month) [Given] b) Insurance Expense $6,300 Prepaid insurance $6,300 (To record insurance expired for the month) [Given] c) Depreciation Expense $3,900 $3,900 Accumulated Depreciation - Equip To record depreciation on equipment for the month) T-Accounts (For general ledger Supplies Prepaid insurance Accumulated Dep. - Equipment $14,200 Dec. 31 $9,100 $37,800 Dec. 31 $31,500 $3,900 $3,900 Dec. 1 Dec. 31 (End. Bal.) $6,300 Dec. 1 Dec. 31 (End. Bal.) Dec. 31 Dec. 31 (End. Bal.) $5,100 Supplies Expense Depreciation Expense Insurance Expense $9,100 $9,100 $3,900 $3,900 Dec. 31 Dec. 31 (End. Bal.) $6,300 $6,300 Dec. 31 Dec. 31 (End. Bal.) Dec. 31 Dec. 31 (End. Bal.)