In: Accounting
Howarth Company’s fiscal year-end is December 31. Below are the
unadjusted and adjusted trial balances for December 31,
2018.
Unadjusted | Adjusted | ||||||||||||
Account Title | Debits | Credits | Debits | Credits | |||||||||
Cash | 58,000 | 58,000 | |||||||||||
Accounts receivable | 43,000 | 43,000 | |||||||||||
Prepaid rent | 2,100 | 1,100 | |||||||||||
Supplies | 1,800 | 900 | |||||||||||
Inventory | 68,000 | 68,000 | |||||||||||
Note receivable | 38,000 | 38,000 | |||||||||||
Interest receivable | 0 | 1,900 | |||||||||||
Office equipment | 53,000 | 53,000 | |||||||||||
Accumulated depreciation | 14,200 | 22,300 | |||||||||||
Accounts payable | 42,000 | 42,000 | |||||||||||
Salaries and wages payable | 0 | 7,000 | |||||||||||
Note payable | 58,000 | 58,000 | |||||||||||
Interest payable | 0 | 3,300 | |||||||||||
Deferred rent revenue | 0 | 2,800 | |||||||||||
Common stock | 54,000 | 54,000 | |||||||||||
Retained earnings | 45,600 | 45,600 | |||||||||||
Sales revenue | 252,000 | 252,000 | |||||||||||
Rent revenue | 7,600 | 4,800 | |||||||||||
Interest revenue | 0 | 1,900 | |||||||||||
Cost of goods sold | 134,000 | 134,000 | |||||||||||
Salaries and wages expense | 52,200 | 59,200 | |||||||||||
Rent expense | 11,600 | 12,600 | |||||||||||
Depreciation expense | 0 | 8,100 | |||||||||||
Supplies expense | 1,700 | 2,600 | |||||||||||
Interest expense | 6,200 | 9,500 | |||||||||||
Advertising expense | 3,800 | 3,800 | |||||||||||
Totals | 473,400 | 473,400 | 493,700 | 493,700 | |||||||||
Required:
Prepare the adjusting journal entries that were recorded at
December 31, 2018. (If no entry is required for a
particular event, select "No journal entry required" in the first
account field.)
1
Record the adjusting entry for rent expense.
2
Record the adjusting entry for supplies expense.
3
Record the adjusting entry for interest revenue.
4
Record the adjusting entry for depreciation expense.
5
Record the adjusting entry for salaries and wages expense.
6
Record the adjusting entry for interest expense.
7
Record the adjusting entry for deferred rent revenue.
Transaction | General Journal | Debit | Credit |
1 | Rent expense | $ 1,000.00 | |
Prepaid rent | $ 1,000.00 | ||
2 | Supplies expense | $ 900.00 | |
Supplies | $ 900.00 | ||
3 | Interest receivable | $ 1,900.00 | |
Interest revenue | $ 1,900.00 | ||
4 | Depreciation expense | $ 8,100.00 | |
Accumulated depreciation | $ 8,100.00 | ||
5 | Salaries and wages expense | $ 7,000.00 | |
Salaries and wages payable | $ 7,000.00 | ||
6 | Interest expense | $ 3,300.00 | |
Interest payable | $ 3,300.00 | ||
7 | Rent revenue | $ 2,800.00 | |
Deferred rent revenue | $ 2,800.00 |
Working
Transaction |
General Journal |
Debit |
Credit |
1 |
Rent expense |
=12600-11600 |
|
Prepaid rent |
=12600-11600 |
||
2 |
Supplies expense |
=2600-1700 |
|
Supplies |
=2600-1700 |
||
3 |
Interest receivable |
1900 |
|
Interest revenue |
1900 |
||
4 |
Depreciation expense |
8100 |
|
Accumulated depreciation |
8100 |
||
5 |
Salaries and wages expense |
=59200-52200 |
|
Salaries and wages payable |
=59200-52200 |
||
6 |
Interest expense |
=9500-6200 |
|
Interest payable |
=9500-6200 |
||
7 |
Rent revenue |
2800 |
|
Deferred rent revenue |
2800 |