| Adjusting Entries
Based on the adjustment data, journalize the adjusting entry and answer each of the questions.
|
| 1 | The office supplies account has a debit balance of $800. The estimated value of supplies on hand is $500.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
|
| 2 | Prepaid Rent has a debit balance of $3,000. This represents 2 months of rent, half of which is now expired.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| | |
|
| 3 | Depreciation on the equipment is estimated at $2,500.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| | |
|
| 4 | Sales salaries owed but not paid (accrued) are $600.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| | |
|
| 5 | Insurance of $1,200 has expired. The original prepaid amount was $3,600.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| | |
|
| 6 | Store supplies of $250 have been used. The unadjusted balance of the account is $600.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| | |
|
| 7 | Insurance records show that $4,000 was paid in advance. Of that amount, $2,500 is still unexpired.
|
| Dr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Cr | ______________|____|____|
| an increase or decrease in the account? "I" or "D"
| ___ |
| Adjusting Entries
[Answer Key]
|
| 1
| The office supplies account has a debit balance of $800. The estimated value of supplies on hand is $500.
|
| Dr |
Office Supplies Expense
| 300
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Office Supplies
| 300
| an increase or decrease in the account? "I" or "D"
| D
|
|
| 2
| Prepaid Rent has a debit balance of $3,000. This represents 2 months of rent, half of which is now expired.
|
| Dr |
Rent Expense
| 1500
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Prepaid Rent
| 1500
| an increase or decrease in the account? "I" or "D"
| D
|
| |
| |
| 3
| Depreciation on the equipment is estimated at $2,500.
|
| Dr |
Deprec.Exp-Equip.
| 2500
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Accum.Deprec.-Equip.
| 2500
| an increase or decrease in the account? "I" or "D"
| I
|
| |
| |
| 4
| Sales salaries owed but not paid (accrued) are $600.
|
| Dr |
Sales Salaries Exp.
| 600
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Sales Salaries Payable
| 600
| an increase or decrease in the account? "I" or "D"
| I
|
| |
| |
| 5
| Insurance of $1,200 has expired. The original prepaid amount was $3,600.
|
| Dr |
Insurance Expense
| 1200
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Prepaid Insurance
| 1200
| an increase or decrease in the account? "I" or "D"
| D
|
| |
| |
| 6
| Store supplies of $250 have been used. The unadjusted balance of the account is $600.
|
| Dr |
Store Supplies Exp.
| 250
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Store Supplies
| 250
| an increase or decrease in the account? "I" or "D"
| D
|
| |
| |
| 7
| Insurance records show that $4,000 was paid in advance. Of that amount, $2,500 is still unexpired.
|
| Dr |
Insurance Expense
| 1500
| an increase or decrease in the account? "I" or "D"
| I
|
| Cr |
Prepaid Insurance
| 1500
| an increase or decrease in the account? "I" or "D"
| D
|