Question and answer
1 Supplies on hand at June 30 total $980. 2. A utility bill for $180 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $3,900 of unearned
service revenue has been earned at the end of the month. 5. Salaries of $1,250 are accrued at June 30. 6. The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months. 7. Invoices representing $3,500 of services performed during the month have not been recorded as of June 30. Prepare the adjusting entries for the month of June.
Before we prepare the trial balance, we need to "update the books" and make sure the general ledger balances reflect ALL activity during the period. [ Not everything up to this point has been entered into the general journal, so we need to prepare journal entries, i.e., adjusting entries, to determine the correct ending balances. Our adjusting entries will be based on the information under
"Other data." 1. The balance in Supplies should be $980. According to the beginning of the year balances, however, it is $2000. We need to "adjust" the balance of Supplies so that it reflects the actual amount of supplies on hand and to recognize, as an expense, the amount of supplies used up. Our adjusting entry looks like this: Supplies expense . . . . . 1020 . . Supplies . . . . . . . . . . . . . . 1020 2. There is a liability for utilities outstanding at the end of the month. We need to report this liability as well as ensure that this expense is recorded - after all, the utilities bill is for THIS month. Utilities expense . . . . . . . 180 . . . Utilities payable . . . . . . . . 180 3. The insurance policy, purchased for $2640, is for one year. One month has passed, so one month of the insurance policy has been "used up." What we're really doing is matching expenses with revenues; the insurance policy needs to be expensed throughout its life. Insurance expense . . . . . 220 . . . Prepaid insurance . . . . . . 220 . . . . [ 2640 / 12 ] 4. At the beginning of the month, unearned service revenue of $5200 is reported. $3900 was earned during the month, so we need to 1) recognize the revenue earned and 2) decrease our liability, as we no longer owe our customers $5200 of services. Unearned service revenue . . . 3900 . . . Service revenue . . . . . . . . . . . . 3900 5. Like #2, salaries is an accrued expense, an expense of the period that won't be paid until next month. This means that, as of June 30, there is a liability to pay the employees the salary they earned. Salaries and wages expense . . . 1250 . . . Salaries and wages payable . . . . . 1250 6. ]
Expert answered|jeifunk|Points 8949|
Question
Asked 3/11/2013 8:18:54 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,551,749 questions answered
Popular Conversations
1/2 x +1/3 y = 0 1/4 x -1/2 y = 8 What is the solution of the system ...
Weegy: (0.4, 2) User: 2/3x -1/2 y = 3 1/2x + y = 5 Which of the following systems is equivalent to the given ...
7/2/2015 2:20:21 PM| 5 Answers
The slope of a line that is perpendicular to a line whose slope is ...
Weegy: An equilateral triangle has symmetry with respect to a line containing an altitude of the triangle. True. ...
7/2/2015 12:32:21 PM| 3 Answers
Solve the equation: h/9 = 7. A. h = 7/9 B. h = –63 C. h = ...
Weegy: A. M = K/LN User: Solve this equation: 2s + s + 12 = 132. A. s = 40 B. s = –30 C. s = 9 D. s = 120 ...
7/3/2015 1:17:37 PM| 3 Answers
write the number in decimal form:fourteenand eighty-fourhundredths.
Weegy: Fourteen and eighty-four hundredths is 14.84
7/2/2015 6:07:53 AM| 2 Answers
round the decimal number to the nearest tenth:285.429
Weegy: 285.429 is equal to 290.
7/2/2015 6:19:24 AM| 2 Answers
_____________ was the first African American to receive the Nobel ...
Weegy: Ralph Bunch was the first African American to receive the Nobel Peace Prize. He won this for his peacemaking ...
7/2/2015 8:14:33 AM| 2 Answers
Weegy Stuff
S
1
L
P
1
1
Points 103 [Total 1509]| Ratings 1| Comments 93| Invitations 0|Offline
S
1
Points 59 [Total 570]| Ratings 0| Comments 59| Invitations 0|Offline
S
Points 31 [Total 31]| Ratings 1| Comments 21| Invitations 0|Offline
S
1
L
L
Points 24 [Total 8404]| Ratings 0| Comments 24| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
P
Points 13 [Total 9542]| Ratings 0| Comments 13| Invitations 0|Offline
S
R
Points 4 [Total 206]| Ratings 0| Comments 4| Invitations 0|Offline
S
L
P
P
Points 4 [Total 3563]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 4 [Total 4]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 1 [Total 1]| Ratings 0| Comments 1| Invitations 0|Offline
S
Points 1 [Total 44]| Ratings 0| Comments 1| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.