Adjustments

Determine the accounts that need to be debited or credited and for how much.
1
The company had $400 of Office Supplies at the beginning of the month. At the end of the month they only had $150 left.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
2
The company had Prepaid Insurance of $900 representing 3-months coverage. After two months they want to prepare statements.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
3
The rent cost the company $1,200 for 6 months. After 2 months it was time to prepare statements.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
4
The depreciation on the Equipment for the period was $2,000.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
5
The Office Supplies account balance at the beginning of the period was $550. They determined they used office supplies of $300 during the month.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
6
The salaries that were accrued (built up) amounted to $450.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________
7
The wages were paid every Friday in the amount of $500. The period ended on Wednesday. Make the adjustment for accrued wages.
Account debited: _____________________
Amount:
________
Account credited: _____________________
Amount:
________


Adjustments

[Answer Key]
1
The company had $400 of Office Supplies at the beginning of the month. At the end of the month they only had $150 left.
Account debited: Office Supplies Expense
Amount:
250
Account credited: Office Supplies
Amount:
250
2
The company had Prepaid Insurance of $900 representing 3-months coverage. After two months they want to prepare statements..
Account debited: Insurance Expense
Amount:
600
Account credited: Prepaid Insurance
Amount:
600
3
The rent cost the company $1,200 for 6 months. After 2 months it was time to prepare statements.
Account debited: Rent Expense
Amount:
400
Account credited: Prepaid Rent
Amount:
400
4
The depreciation on the Equipment for the period was $2,000.
Account debited: Deprec. Expense--Equipment
Amount:
2000
Account credited: Accum.Deprec.--Equipment
Amount:
2000
5
The Office Supplies account balance at the beginning of the period was $550. They determined they used office supplies of $300 during the month.
Account debited: Office Supplies Expense
Amount:
300
Account credited: Office Supplies
Amount:
300
6
The salaries that were accrued (built up) amounted to $450.
Account debited: Salaries Expense
Amount:
450
Account credited: Salaries Payable
Amount:
450
7
The wages were paid every Friday in the amount of $500. The period ended on Wednesday. Make the adjustment for accrued wages.
Account debited: Wages Expense
Amount:
300
Account credited: Wages Payable
Amount:
300