To journalize entries for a variesty of accruals.

Gilbert company presented the following data for its December 31, 2002 adjustment process.

(a) The office supplies Expense account showa a balance pior to adjustment of 4,440. An inventory count shows office supplies on of 690.

Dr. Office supplies expense $5,130
Cr. Cash $5,130

(b) Thr rent income account shows the receipt of 7.000 for five- month lease On Novemeber 1 20x2.

Dr. Rent Expense 7,000
Cr. Rent income 7,000

(c)The prepaid insurance account shows a payment of 4,800 for three- year premium on April 1, 20x2.

Dr. prepaid insurance Expense 4,800
Cr. Prepaid Insurance 4,800

(d) The company holds a 90-day note dated December 11. 20x2. The note has a face value of 10,000 and carries interest at 8%.

Dr. Interest Expense 200
CR. Ibterest Income 200

(e) Salaries of 130,000 are paid weekly on MOnday for the previous week. This year, December 31 fell on a Thursday.

Dr. Salaries Expense 130,000
C. SAlaries payable 130,000

(f) THe unearned Subscription income account shows a credit balance of 72,000, representing subscriptions to four issues of a company publication.
three issues have been delivered to subscribers in 20x2.

check my answer.

I am assuming you need to make the adjusting entries at year end. Is that a correct assumption?


To journalize entries for a variesty of accruals.

Gilbert company presented the following data for its December 31, 2002 adjustment process.

(a) The office supplies Expense account showa a balance pior to adjustment of 4,440. An inventory count shows office supplies on of 690.

Dr. Office supplies expense $5,130
Cr. cash $5,130


I am not sure on this. They are telling you what Office Expense is, but they do not appear to give you enough info.



(b) Thr rent income account shows the receipt of 7.000 for five- month lease On Novemeber 1 20x2.

Dr. Rent Expense 7,000
Cr. Rent income 7,000


Dr. Rent Expense 2,850(7,000x2/5)
Cr. Rent Income 2,850



(c)The prepaid insurance account shows a payment of 4,800 for three- year premium on April 1, 20x2.

Dr. prepaid insurance Expense 4,800
Cr. Prepaid Insurance 4,800


Dr. Insuracne Expense 1,200
Cr. Prepaid Insurance 1,200 (4,800 x 9/36)



(d) The company holds a 90-day note dated December 11. 20x2. The note has a face value of 10,000 and carries interest at 8%.

Dr. Interest Expense 200
CR. Ibterest Income 200


Dr. Interest Expense 44.44 (10,000 x .08/4 x 20/90)
CR. Interest Payable 44.44



(e) Salaries of 130,000 are paid weekly on MOnday for the previous week. This year, December 31 fell on a Thursday.

Dr. Salaries Expense 130,000
C. SAlaries payable 130,000


Dr. Salaries Expense 104,000 (130,000 x 4/5)
C. Salaries payable 104,000

The Friday is of 2003 (the new year). Therefore, don’t count the Friday in the 2002 numbers.



(f) THe unearned Subscription income account shows a credit balance of 72,000, representing subscriptions to four issues of a company publication.
three issues have been delivered to subscribers in 20x2.

check my answer.


Dr. Unearned Revenue 54,000 (72,000 x 3/4)
Cr. Revenue 54,000

You have earned 75% of the money. 3 of 4 subscriptions. So 75% of $72,000 = 54,000

So wish one do I do reversing enteries on.

Reversing entries seem a bit silly to me.

That being said:
b, d, e could use reversing entries