Question

The following information is available for Weber Inc. on September 30 for the year just ended.

1. Of the consulting fees Weber Inc. received in advance, $800 has been earned.
2. Equipment purchased in a previous year for $18,500 will be sold after five years for $2,500.
3. Interest of $1,140 has accrued on a bank loan and is unrecorded.
4. Property taxes of $600 have accrued but are unrecorded.
5. Buildings purchased in a previous year for $68,750 will be sold after ten years for $9,250.
6. A review of the $12,500 unadjusted balance in the prepaid rent account shows a remaining balance of $9,000 at the end of the year.
7. A review of the $4,400 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $4,100.
8. Weber Inc. purchased furniture in a previous year for $14,000 and expects to sell this furniture for $500 after ten years.
9. $3,000 of advertising Weber Inc. placed in the local newspaper is unrecorded and unpaid.
10. $1,000 of the television advertising paid for in advance has been used.

Prepare the required adjusting entries at September 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'.

Answer 1

Date	General Journal	Debit	Credit	Assets	Liabilities	Equity
30/Sep	Unearned Revenue	800			-
	Consulting fees Earned		800			+
30/Sep	Depreciation Expense - Equipment	3,200				-
	Accumulated Depreciation - Equipment		3,200	-
30/Sep	Interest Expense	1,140				-
	Interest Payable		1,140		+
30/Sep	Property Tax Expense	600				-
	Property Tax Payable		600		+
30/Sep	Depreciation Expense - Building	5,950				-
	Accumulated Depreciation - Building		5,950	-
30/Sep	Rent Expense	3,500				-
	Prepaid Rent		3,500	-
30/Sep	Supplies Expense	300				-
	Supplies		300	-
30/Sep	Depreciation Expense - Furniture	1,350				-
	Accumulated Depreciation - Furniture		1,350	-
30/Sep	Advertising Expense	3,000				-
	Accounts Payable		3,000		+
30/Sep	Advertising Expense	1,000				-
	Advance Advertising		1,000	-