CH 3 Adjusting entries- in class ex - f Building was purchased last year at a cost of TL 150.000 million The building’s useful life is estimated to be

ADJUSTING ENTRIES IN CLASS EXERCISE Prepare the adjusting journal entries needed at 31 December for each of the following independent cases. a. Unearned rent revenue of TL 4.500 million represents one year rent revenue collected in advance from the tenant on 1 August. b. The company had notes payable for a bank. The interest expense accrued for the note payable on 31 December is TL 6.000 million. c. Revenue earned but not billed to customers is TL 7.750 million. d. Monthly salary expense is TL 45.000 million and the company pays salaries on the 15 th day of each month. e. The unadjusted balance of supplies account is TL 950 million. The count of supplies on 31 December revealed TL 250 million of supplies on hand.

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Unformatted text preview: f. Building was purchased last year at a cost of TL 150.000 million. The building’s useful life is estimated to be 40 years. g. On 1 May the company paid TL 3.600 million for the insurance of company premises for 12 months period. Date Account Debit Credit a. 31 December Unearned Revenues 1.875 Revenues 1.875 b. 31 December Interest Expense 6.000 Interest Payable 6.000 c. 31 December Fees Receivable 7.750 Revenues 7.750 d. 31 December Salaries Expense 22.500 Salaries Payable 22.500 e. 31 December Supplies Expense 700 Supplies 700 f. 31 December Depreciation Expense 3.750 Accumulated Depreciation 3.750 g. 31 December Insurance Expense 2.400 Prepaid Insurance 2.400...
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