Williams Cleaning and Maintenance, owned by Jay Williams, provides cleaning services to hotels, motels, and hospitals. On January 31, 2013, the firm’s worksheet showed the following adjustment data. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are also given.
ADJUSTMENTS
a. Supplies used, $8,580
b. Expired insurance, $4,440
c. Depreciation on machinery, $3,360
REVENUE AND EXPENSE ACCOUNTS |
| |
401 | Fees Income | $98,400 Cr. |
511 | Depreciation Expense—Machinery | 3,360 Dr. |
514 | Insurance Expense | 4,440 Dr. |
517 | Rent Expense | 9,000 Dr. |
520 | Salaries Expense | 48,000 Dr. |
523 | Supplies Expense | 8,580 Dr. |
526 | Telephone Expense | 630 Dr. |
529 | Utilities Expense | 1,920 Dr. |
DRAWING ACCOUNT |
| |
302 | Jay Williams, Drawing | 7,200 Dr. |
INSTRUCTIONS
1. Record the adjusting entries in the general journal, page 3.
2. Record the closing entries in the general journal, page 4. Use account numbers provided on page 186 for any account number not given.
Analyze: What effect did the adjusting entry for expired insurance have on the Insurance Expense account?
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