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18 July, 12:04

Adjusting items:

1. A physical inventory shows supplies on hand of $3,000 at year end. 2. The prepaid rent covers December 2016 thru March 2017 rents. 3. December depreciation on equipment is $11,000 per month. 4. At year end Wages of $10,000 were earned but unpaid. Use this information to prepare the general Journal entry

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  1. 18 July, 12:26
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    This is an uncompleted question. Here, is a completed question

    The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit $88,450 Cash Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0 220,000 Capital Stock Retained Earnings 111,145

    Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 144,000 Interest Expense 6,840 $1,522,565 $1,522,565 Totals Adjusting Items: 1. A physical inventory shows supplies on hand of $3,000 at year end. 2. The prepaid rent covers December 2016 thru March 2017 rents. 3. December depreciation on equipment is $11,000 per month 4. At year end Wages of $10,000 were earned but unpaid. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment.

    Explanation:

    The adjusting entries are shown below:

    1. Supplies expense A/c Dr $3,255

    To supplies A/c $3,255

    The supplies expense is computed by

    = Supplies balance - supplies on hand

    = $6,255 - $3,000

    = $3,255

    2. Rent expense A/c Dr $2,750 ($11,000 : 4 months)

    To Prepaid rent A/c $2,750

    3. Depreciation Expense A/c Dr $11,000

    To Accumulated Depreciation - Equipment A/c $11,000

    4. Wages Expense A/c Dr $10,000

    To Wages payable A/c $10,000
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