Need help with adjusting entries:

1. An unrecorded and unpaid advertising bill discovered - 85

2. Of the advances received from clinets, 800 had been earned??

What do YOU think the answer is?

Make an attempt at your own homework first. Then we will assist you.

I got # 1

For # 2. Advances from clients 800
Fee Revenue 800

For number1 :
Interest earned on marketable securities, but not received $120

Interest expense 120
Interest payable 120

#2 unpaid salaries 100

Salaries expense 100
Salaries payable 100

#3an unrecorded and unpaid advertising bill was discovered 85??

#4 Supplies on hand determined by physical count 90

Supplies expense 90
Supplies 90

Quote:

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Originally Posted by Pidgeon73

for number1 :
interest earned on marketable securities, but not received $120

Interest expense 120
interest payable 120

#2 unpaid salaries 100

salaries expense 100
salaries payable 100

#3an unrecorded and unpaid advertising bill was discovered 85???

#4 Supplies on hand determined by physical count 90

Supplies expense 90
supplies 90

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I don't know if this is right but I wanted to try, please correct me if I am not right

For number 1 if you are to receive the interest, then the entry is:
Debit Interest Receivable for 120
Credit Interest Revenue for 120

Number 2 is correct.

Number 3 is:
Debit Advertising Expense for 85
Credit Accounts Payable for 85

Number 4 you need to know the account balance to do this one. For example if your account balance is 190 and your physical count is 90, then your entry will be:
Debit Supplies Expense for 100
Credit Supplies for 100
This is done to bring your account balance into agreement with your physical count.

For number 4 again
The supplies on the worksheet is 310

Supplies on hand determined by a physical count 90

Would the entry now be: supplies expense 220 (debit)
Supplies 220 (credit)

Yes, you are correct.

Quote:

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Originally Posted by pready

Yes, you are correct.

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