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Adjusting Journal Entries Overview

The document outlines various adjusting entries for expenses, including salary, supplies, rent, depreciation, and insurance, as of December 31. It details the calculations for each expense and the corresponding journal entries. Additionally, it includes closing entries for revenues and expenses, resulting in a net income and adjustments to capital and withdrawals.

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7 views2 pages

Adjusting Journal Entries Overview

The document outlines various adjusting entries for expenses, including salary, supplies, rent, depreciation, and insurance, as of December 31. It details the calculations for each expense and the corresponding journal entries. Additionally, it includes closing entries for revenues and expenses, resulting in a net income and adjustments to capital and withdrawals.

Uploaded by

namcbxd3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 3

a. 31/12: Employees worked -> expense increase $ 2000; salary payable +


$2000
Adjusting entry: Dr Cr
31/12/Y Salary expense 2000
Salary payable 2000
b. Record for pay day:
4/1/Y+1 Salary payable 2000
Salary expense 8000
Cash 10000

a. Supplies expense = Supplies used = (1500 + 8250) - 1125 = $8625


Record: Dr Cr
31/12 Supplies expense 8625
Supplies 8625
b. Rent expense = 24000 /24 = $1000 (per month)
Balance of prepaid rent at 31/12/2010 = 24000 - 1000 x 12 = $12000

31/12 Dr Cr
a. Depreciation expense 4000
Accumulated depreciation 4000
b. Insurance expense 950
Prepaid insurance 950
c. Insurance expense 1800 (=2400-600)
Prepaid insurance 1800
d. Salary expense 900
Salary payable 900
e. Unearned rent 1400
Rent revenue 1400
f. Account receivable 750
Rent revenue 750
g. Depreciation expense = (30000 - 0 )/ (20 x 12) = $125
Depreciation expense 125
Accumulated depreciation 125

Chapter 4

31/12 Repair fees earned 27500


Income summary 27500
(Closing revenue:)
31/12 Income summary 13300
Depreciation expense 1800
Salaries expense 10000
Insurance expense 1500
(Closing expenses)
31/12 Income summary 14200
Retained earnings (Thomas, Capital) 14200
(Closing Income summary: Net income = 27500-13300 = $14200)
31/12 Thomas, Capital 4000
Thomas, Withdrawal 4000
(Closing withdrawal)

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