Question

In: Accounting

Howarth Company’s fiscal year-end is December 31. Below are the unadjusted and adjusted trial balances for...

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.

Solutions

Expert Solution

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


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