Question

Record the following ADJUSTING Entries as of Dec 31st 2018 in General Journal Form: a. Office Supplies had a debit balance of $4,250 at the beginning of the year (Jan 1, 2018). During the year, additional supplies were purchased of $5,500. A count of supplies on hand at the end of the year (Dec 31, 2018) totaled $2,650 (Asset Value). Record the supplies use b. us up during 2018. (Hint: $4,250 + $5,500 - $2,650 = Supplies Used Up and needs to be recorded as Supplies Expense) c. Tara Company purchased an Auto on Jan 1, 2018 at a cost of $22,000. During the year, the Auto depreciated $4,000. d. Tara Company prepaid $18,000 for 6 months of her RENT on November 1, 2018. Record the adjustment for expired rent expense at Dec 31, 2018 (Hint: 2 months x $3,000 =Rent Expense needs to be recorded from Prepaid Rent). e. Tara Corp. has unpaid electricity costs of $650 at Dec 31, 2018. f. Tara Company collected revenue in advance of $12,000. At year end Tara determines that 80% was earned during 2018. (HINT: $12,000 x 80% is EARNED and no longer UNEARNED) g. Tara Company earned $4,350 from a customer on Dec 15, 2018 and has not yet sent out a bill or recorded the transaction yet. h. The Tara Company has WEEKLY payroll of $20,000. The year (12/31/18) ended on a Thursday and the employees are paid weekly every Friday. Record an adjustment for the payroll earned and unpaid in 2018.( HINT: $20,000 / 5 Days = $4,000 per day x 4 Days = $16,000 Unpaid Salary Expense NOT yet recorded)

Answer 1

Record adjusting entries as follows
Item	Account Title and Explanation	Debit	Credit
a	Supplies expense ($4,250 + $5,500 − $2,650)	$7,100
	Supplies		$7,100
	To record supplies used during the period
c	Depreciation expense	$4,000
	Accumulated depreciation - Equipment		$4,000
	To record depreciation expense
d	Rent expense ($18,000 × 2 ÷ 6)	$6,000
	Prepaid rent		$6,000
	To record adjusting entry for rent expense
e	Utilities expense	$650
	Utilities payable		$650
	To record adjusting entry for utilities payable
f	Unearned revenue ($12,000 × 80%)	$9,600
	Service revenue		$9,600
	To record service revenue earned
g	Accents receivable	$4,350
	Service revenue		$4,350
	To record service revenue earned
h	Salary expense ($12,000 × 4 ÷ 5)	$16,000
	Salaries payable		$16,000
	To record accrued salary expense