Question

Requirement #1: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of repair supplies is $200.
c) The estimated depreciation on repair equipment is $120.   
d) The estimated income taxes are $65

Requirement #2: Post the adjusting entries on March 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.

Answer 1

Answer
Journal Entry
Date	Account titles and explanation	Debit	Credit
31-Mar	Insurance expense	$          -
	To Insurance Premium		$          -
	(To record Insurance premium is charged for a month)
31-Mar	Statement of Profit or Loss	$       200	.
	To Inventory		$           6
	(To record Ending Inventory is adjusted)
31-Mar	Depreciation dr.	$       120	.
	To Accumulated depreciation		$       120
	(To record Depreciation on repair equipment)
31-Mar	Income tax expense	$         65	.
	To Income tax payable		$         65
	(To record Income tax estimated for the year)
.	Please provide T-Accounts for Step-2 completed