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?

Quote:

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Originally Posted by kizzyb

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

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

Quote:

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Originally Posted by kizzyb

(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

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

Quote:

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Originally Posted by kizzyb

(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

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

Quote:

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Originally Posted by kizzyb

(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

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

Quote:

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Originally Posted by kizzyb

(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

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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.

Quote:

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Originally Posted by kizzyb

(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.

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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