This preview shows page 1. Sign up to view the full content.
Unformatted text preview: interest due at maturity. 6/0 1 /03 DEBIT NR $50000 CREDIT Cash $50000 12/31/03 AJE DEBIT Interest Receivable $2919 CREDIT Interest Revenue $2919 6. We begin the year with $3,000 of supplies and purchase $10,000 more during the year. At year end we count and find that we have $1,500 left. Prepare the necessary adjusting entry. 12/31/05 AJE DEBIT Supplies Expense $11500 CREDIT Supplies $11500 7. Prepare the closing entries: SALES, EXPENSES, and DIVIDENDS. Starts year off with 0 instead of cumulative number. Not Balance Sheet Items. (make account=0 and whats left= Retained Earnings) Sales $10,000 Rent Expense $ 500 Salaries Expense $ 1,000 Tax Expense $ 900 Dividends $ 250 a. To close net income DEBIT Sales $10000 b. To close dividends DEBIT Retained Earnings $250 CREDIT Dividends $250 Adjusting Journal Entries Example...
View Full Document
- Fall '08
- Financial Accounting