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.
18,410,558 questions answered
Popular Conversations
. What is the value of 4 cubed? A. 24 B. 43 C. 64 ...
Weegy: The answer is C. 125,000,000 User: What is the value of 324? A. 1,048,576 B. 18 C. 128 D. ...
11/22/2014 4:52:09 PM| 3 Answers
Who is the prime minister of India?
Weegy: Manmohan Singh is the 13th and current Prime Minister of India. User: National flower of India?
11/22/2014 1:28:06 AM| 2 Answers
One of the major advantages of VANs is cost. True or False
Weegy: What is false? Do you have a question for Weegy? User: True or False One of the major advantages of VANs is ...
11/22/2014 2:06:05 AM| 2 Answers
293.55 is 51.5% of what number?
11/22/2014 3:36:30 AM| 2 Answers
When purchasing merchandise for resale for cash, record the ...
Weegy: User: When purchasing merchandise for resale for cash, record the transaction in the Answer: Business documents ...
11/22/2014 6:52:09 AM| 2 Answers
The _____ is the smallest interval in Western music. half ...
Weegy: In Western music, intervals are most commonly differences between notes of a diatonic scale. User: Which types ...
11/22/2014 9:44:17 AM| 2 Answers
Which of the following best describes the advantage of having data ...
Weegy: a. The number of digits that can be included within the data best describes the advantage of having data ...
11/22/2014 11:03:31 AM| 2 Answers
Dissonant harmonies tend to resolve to consonant ...
Weegy: Dissonant harmonies tend to resolve to consonant harmonies. This is false. User: Woodwinds and _____ are wind ...
11/22/2014 3:43:53 PM| 2 Answers
A colon can be used to combine two clauses when you use it to ...
Weegy: A colon can be used to combine two clauses when you use it to represent the word is letter c. and h
11/22/2014 3:31:35 PM| 2 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2298 [Total 14009]| Ratings 10| Comments 2198| Invitations 0|Offline
S
L
Points 1276 [Total 3562]| Ratings 0| Comments 1276| Invitations 0|Offline
S
L
Points 694 [Total 1215]| Ratings 6| Comments 634| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 685 [Total 14059]| Ratings 0| Comments 685| Invitations 0|Offline
S
Points 442 [Total 474]| Ratings 1| Comments 432| Invitations 0|Offline
S
1
L
L
Points 211 [Total 6605]| Ratings 0| Comments 211| Invitations 0|Offline
S
L
Points 150 [Total 1446]| Ratings 3| Comments 120| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
S
Points 40 [Total 40]| Ratings 4| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.