To record this adjustment we will increase debit

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To record this adjustment we will increase (debit) Insurance Expense and decrease (credit) the Prepaid Insurance asset account.DateAccounts and ExplanationDebitCreditDec. 31Insurance Expense500Adj. (c)Prepaid Insurance500To record insurance expense.d.Accrued Interest Expense, $ 80$80.Borrowing money creates an additional liability for a Note Payable. Companies are typically required to pay interest on their notes. Often, the interest is due annually. The company has not yet paid cash for anyinterest on the note, but the company must record the amount of interest expense that has been incurred through DecemberDecember
31. The company will make an adjusting entry to accrue for DecemberDecember's interest expenselong dash$ 80$80. To do so, it will increase Interest Expense with a debit, and increase the Interest Payable liability with a credit.
(a)", "Adj. (b)", etc. Remember that a debit in a journal entry should be posted as a debit in a T-account and a credit in a journal entry should be posted as a credit in a T-account.The T-accounts, along with their unadjusted balances that you computed in Requirement 1 appear below. Begin by posting Adj. (a) and Adj. (b) to the ledger.LOADING...(Click the icon to view adjusting journal entries Adj. (a) and Adj. (b) that you prepared above.)CashAccounts PayableService RevenueBal.34,4901,700 Bal.18,900 Bal.Utilities PayableSalaries Expense260 Bal.Bal.4,200Accounts ReceivableInterest PayableRent ExpenseBal.3,400Bal.1,200Office SuppliesUnearned RevenueUtilities ExpenseBal.2,0001,090 Bal.Bal.260600Adj. (a)Prepaid InsuranceNotes PayableAdvertising ExpenseBal.4,50010,000 Bal.Bal.1,400EquipmentWendson, CapitalSupplies ExpenseBal.13,50062,000 Bal.Adj. (a)600Accumulated Depr.—EquipmentWendson, WithdrawalsInsurance Expense225Adj. (b)Bal.5,000LandInterest ExpenseBal.24,000
Depreciation Expense—EquipmentAdj. (b)225Now post Adj. (c) and Adj. (d) to the T-accounts below.LOADING...(Click the icon to view adjusting journal entries Adj. (c) and Adj. (d) that you prepared above.)CashAccounts PayableService RevenueBal.34,4901,700 Bal.18,900 Bal.Utilities PayableSalaries Expense260 Bal.Bal.4,200Accounts ReceivableInterest PayableRent ExpenseBal.3,40080 Adj. (d)Bal.1,200Office SuppliesUnearned RevenueUtilities ExpenseBal.2,000600Adj. (a)1,090 Bal.Bal.260Prepaid InsuranceNotes PayableAdvertising ExpenseBal.4,50010,000 Bal.Bal.1,400500Adj. (c)EquipmentWendson, CapitalSupplies ExpenseBal.13,50062,000 Bal.Adj. (a)600Accumulated Depr.—EquipmentWendson, WithdrawalsInsurance Expense225Adj. (b)Bal.5,000Adj. (c)500LandInterest Expense
Bal.24,000Adj. (d)80Depreciation Expense—EquipmentAdj.

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