Question

Desoto Company must make three adjusting entries on December 31 2019 a. Supolies used. 510.000 supplies totaling $16 B00 were purchased on December 1, 2019 and debited to the Supplies account) b. Expired insurance 57600 on December 1, 2019. the ti paid $45.600 for six months insurance coverage in advance and debited Prepaid Insurance for this amount c. Depreciation expense for equipment. $5.200 . Required: Prepare the journal entries for these adjustments and post the entries to the general ledger accounts Complete this question by entering your answ Leder Post the entries to the general ledger accounts

Answer 1

Solution:

a) Adjusting Entries

Date	Account Titles and Explanation	Debit	Credit
Dec.31	Supplies Expense	$     10,400
	Supplies		$       10,400
	(Being supplies expense)
Dec.31	Insurance Expense	$       7,600
	Prepaid Insurance		$         7,600
	(Being insurance expense)
Dec.31	Depreciation Expense-Equipment	$       5,200
	Accumulated Depreciation-Equipment		$         5,200
	( Being depreciation expense)

b) T-Accounts

Supplies		Account No. 121			Prepaid Insurance		Account No. 131
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 1,2019	$       16,800		$         16,800		Dec 1,2019	45600		$ 45,600
Dec 31,2019		$        10,400	$           6,400		Dec 31,2019		$    7,600	$ 38,000
Accumulated Depreciation-Equipment		Account No. 142			Depreciation Expense-Equipment		Account No. 517
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 31,2019		$           5,200	$           5,200		Dec 31,2019	$           5,200		$    5,200
Insurance Expense		Account No. 521			Supplies expense		Account No. 523
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Dec 31,2019	$          7,600		$           7,600		Dec 31,2019	$         10,400		$ 10,400