Trying to understand this question and a few others, this is my attempt, am I close or way off base? Thanks for your help in advance!
Question 3
Prepare year end adjusting entries for each of the following:
1. Office supplies had a balance of $84 on Jan 1, purchases debited to office supplies during the year amount to $415. A year end inventory reveals supplies of $285 on hand.
2. Depreciation of office equip. is estimated to be $2,130 for the year.
3. Property tax's for 6 months, estimated at $875, have acrued but have not been recorded.
4. Unrecorded interest receivable on US govt. bonds is $850.
5. Unearned revenue has a balance of $900. Services for $300 in advance have been performed.
6. Services totaling $200 have been performed, customer hasn't been billed.
Answer:
1. Office supplies had a balance of $84 on Jan 1, purchases debited to office supplies during the year amount to $415. A year end inventory reveals supplies of $285 on hand.
DR-Office Supply Expense 284
CR – Office Supplies 284
2. Depreciation of office equip. is estimated to be $2,130 for the year.
DR – Depreciation Expense 2130
CR – Office Equip Depreciation Acct 2130
3. Property tax's for 6 months, estimated at $875, have acrued but have not been recorded.
DR – Property Tax Expense 875
CR – Property Tax Liability 875
4. Unrecorded interest receivable on US govt. bonds is $850.
DR – Interest Receivable (Investments Receivable) 850
CR – Interest Revenue 850
5. Unearned revenue has a balance of $900. Services for $300 in advance have been performed.
DR – Cash 900
CR – Revenue 300
CR – Unearned Revenue (Current Liability Account) 600
6. Services totaling $200 have been performed, customer hasn't been billed.
DR - Accounts Receivable 200
CR – Revenue 200
