Question

Prepare adjusting entries for the following transactions.

Choose from the following accounts: Interest Expense, Insurance Expense, Legal Expense, Salary Expense, Tax Expense, Interest Revenue, Insurance Revenue, Legal Revenue, Salary Revenue, Tax Revenue, and Prepaid Expense, Unearned Revenue, Interest Receivable, Insurance Receivable, Tax Payable

Do NOT enter dollar signs or commas when entering the dollar amounts

1.   Unrecorded interest accrued on savings bonds is $410.

Debit Account

Amount

Credit Account

Amount

2.   Property taxes incurred but not paid or recorded amount to $800.

Debit Account

Amount

Credit Account

Amount

3.   Legal service revenues of $4,000 were collected in advance. By year end $900 was still unearned.

Debit Account

Amount

Credit Account

Amount

4.   Prepaid insurance had a $500 debit balance prior to adjustment. By year end, 60 percent was still unexpired.

Debit Account

Amount

Credit Account

Amount

5.   Salaries incurred by year end but not yet paid or recorded amounted to $650.

Debit Account

Amount

Credit Account

Amount

Answer 1

Journal

1	Interest Receivable	410
	Interest Revenue		410
2	Tax Expense	800
	Tax Payable		800
3	Unearned Revenue	3,100
	Legal Revenue		3,100
4	Insurance Expense	200
	Prepaid Expense		200
5	Salary Expense	650
	Salaries payable		650