Question

Flint Hills, Inc. has prepared a year-end 2016 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred.
Required:
Prepare adjusting journal entries, as needed, for the following items.

1. The Supplies account shows a balance of $540, but a count of supplies reveals only $210 on hand.
2. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $420 in Insurance expense. A review of insurance policies reveals that $125 of insurance is unexpired.
3. Flint Hills employees work Monday through Friday, and salaries of $2,400 per week are paid each Friday. Flint Hills' year-end falls on Tuesday.
4. On December 31, 2016, Flint Hills received a utility bill for December electricity usage of $190 that will be paid in early January.

Answer 1

S. No.	Account titles and explanation	Debit	Credit
1	Supplies Expense (540-210)	$330.00
	Supplies		$330.00
	(To record suppliese expense at year end)
2	Prepaid Insurance	$125.00
	Insurance Expense		$125.00
	(To record insurance unexpired)
3	Salaries Expense	$960.00
	Salaries Payable (2400*2/5)		$960.00
	(To reccord salaries outstanding at year end)
4	Utilitiy Expense	$190.00
	Accounts Payable		$190.00
	(To record utilities at year end)