Question

Date of Submission ADJUSTING ENTRIES AND POSTING TO T-ACCOUNTS (PART 1) Prepare the required adjusting journal entry for each situation as of December 31 of the current vear. See the last page for the unadjusted account balances shown in T-accounts. (a) Suppose Deana's had received a $1,800 shipment of supplies in September of the current year. When counting the supplies on December 31 of the current year, Deana's found only $800 worth of supplies on hand. Debit and credit the accounts affected. Dec. 3 Ensure the equation still balances and debits credits. Assets Stockholders' Equity Liabilities (b) Suppose Deana's had paid S12,000 for six months' rent on November 1 of the current year. As of December, 31 of the current year, two months' (November & December) prepaid rent has expired. Debit and credit the accounts affected. Dec. 31 credits. Ensure the equation still balances and debits- Stockholders' Equity Assets Liabilities (c) Suppose Deana's had paid $6,000 for one year's insurance on June 1 of the current year

Answer 1

(2 cay cash paid is treated as negitive, because there is no cash balan il. * liabilities will be tero © Insurance paid = $6000 for lyear on june 1st. 6000 = 5oul month. prepaid Rent = $500 45 = 2500. Dec 31st prepaid Insurance $2500 Insurance Expenses $ 2500 Assets = liabilities t stock holder's equity. (prepaid Rent + cash) - 0 + Closs) 2500 – 600O - O + (3500) = - 3500 = -3500 for @ Question. Dec 31st supplies on hand & 800 supplies Expenditure . $800. Note : you can treat the supplies either for cash (ool for credit.

@ of supplies At the time Supplies - Accounts payables of receipt $ 1800 $1800 Supplies Consumed supplies on hand 2 = $1000 ( Expenditure) $800 (Assets) Assets = $800 = tabilities t stockholder's Gauty $1800 + ($1000) $800 = $ 800 the expenditure is Csince loss to busines). O Rent paid on Nov 1 for six months $12000, @ 2000/month Dec 31st Prepaid Rent . $92000 Rent Expenses $3000. Assef = liabilities t stockholder's equity. восе е (porepaid Rent + cash ) = 0 + (2000) 8000 - 12000 = C4000) - 4000 - -4000