Question

4-4. Adjusting entries. items as of October 31 in the jouma Enter the correct adjusting entries for the foll provided. If no entry is required, write "NON The company has received a bill for utilities for the month in the amount of S1.750. This bill will be paid next month. b. Interest on a loan at the bank is due as of November 1. We borrowed $5.000 three months ago at 6% interest. to be shipped to him. At the A customer paid us $600 in advance for merchandise to be shipped to him time the check was received, the Unearned Revenue account was credited. Th shipping clerk tells us that one-third of the merchandise has been shipped and received by the customer. Depreciation on the trucks was last recorded a year ago. The trucks cost $75.000 have a $5,000 salvage value, and are estimated to last for seven years. The Prepaid Advertising account has a balance of $2,300. Of this amount, we have used $950 this month. Date General Journal Post Ref. Debit Description Credit 100

Answer 1

Date	Description	Ref	Debit	Credit
a	Utilities expense		$    1,750
	Utilities payable			$    1,750
b	Interest expense		$         75
	Note payable			$         75
	[Interest accrued is = $5,000 X 6% X 3/12]
c	Unearned revenue		$       200
	Earned revenue			$       200
	[Earned revenue is $600 X 1/3]
d	Depreciation expense		$ 10,000
	accumulated depreciation			$ 10,000
	[Depreciation expense = ($75,000 - $5,000)/7 years]
e	Advertisement expense		$    1,350
	Prepaid advertisement			$    1,350
	[Expense = $2,300 - $950]