Prepare the necessary adjusting entries for the following transactions.
DATE
a. A life insurance policy examination showed $1,040 of expired insurance a
Originally, the company recorded it as prepaid insurance
DEFFERAL ASSET METHOD EXPIRED
b. An inventory count showed $210 of unused shop supplies still available b
Initially, company recorded a journal entry as debit to supplies expense.
DEFFERAL EXPENSE METHOD UNEXPIRED
c. Depreciation expense on shop equipment, $350 c
PROVISION DEPRECIATION
d. Depreciation expense on the building, $2,020 d
PROVISION
e. A beautician is behind on space rental payments, and this $200 of e
accrued revenues was unrecorded at the time the trial balance was
prepared
ACCRUALS ACCRUED INCOME
f. $2,800 of the Earned Rent account balance was still unearned by year-end f
DEFFERAL INCOME METHOD
g. Three months property taxes, totaling $450, have accrued. This g
additional amount of property taxes expense has not been recorded.
ACCRUALS ACCRUED EXPENSE
h. One month's interest on the note payable, $600, has accrued but is unrecorded. h
ACCRUALS ACCRUED EXPENSE
i. The one employee, a receptionist, works a five-day workweek at $50 i
per day. The employee was paid last week but has worked Tuesday
through Friday this week for which she has not been paid.
ACCRUALS ACCRUED EXPENSE
j. The company has not received a water and sewer services bill for j
December. Based on prior months’ bills, the bill is expected to be
prior months’ bills, the bill is expected to be $100
ACCRUALS ACCRUED EXPENSE
PARTICULARS PR DEBIT CREDIT
Insurance Expense 1040
Prepaid Insurance 1040
to adjust prepaid insurance
Supplies 210
Supplies Expense 210
to adjust supplies
Depreciation Expense 350
Accumulated Depreciation 350
to record depreciation expense- equipment
Depreciation Expense 2020
Accumulated Depreciation 2020
to record depreciation expense- building
Rent Receivable/Accounts Receivable 200
Rent Income/ Accrued Service Revenue 200
to record accrued revenue
Rent Income 2800
Unearned Rent Income 2800
to record earned rent income
Tax Expense 450
Accrued Tax Expense 450
to record tax expense
Interest Expense 600
Interest Payable 600
to record interest expense
Salaries Expense 200
Accrued Salaries Expense 200
to record salaries expense
Utilities Expense 100
Utilities Payable 100
to record utilities expense
