Question

(Sorry for multiple questions in one question)

Instructions:

1. General Journal - Adjusted journal entries and post to ledger

2. Ledger - T Accounts

A. Post adjusting activity - with journal reference (add on to unadjusted balance)

B. Show adjusted ending balance

3. Trial Balance - Adjusted

4. Financial Statements - Financial, R/E, Balance sheet, Cash flow - direct method (GAAP requires a reconciliation)

5. General Journal - Post closing journal entries & Post to ledger

6. Ledger - T accounts

A. Show adjusted balance

B. Post-closing activity with journal entry reference

C. Show ending closing balances

7. Trial Balance - Post closing

Adjusting Entries:

A.) Salaries earned but not paid for the period $1,500.

B.) Record Accrued interest income on investments of $400.

C.) Depreciation of $600.

D.) Determine the amount of insurance that has expired. (June 1 - Purchased two years of insurance for $6,000)

E.) Supplies on hand - $500.

F.) Earned $2,000 of unearned revenue.  

G.) Record the amount of expired rent. (Oct 1 - Paid rent for period of $12,000 for the next year)

H.) Record accrued interest expense of $950 note payable.

	Account	Debit	Credit
100	Cash	123,150
110	Accounts Receivable	17,000
120	Inventory	42,700
125	Supplies	4,000
130	Prepaid Insurance	6,000
140	Prepaid Rent	12,000
150	Marketable Securities	10,000
160	Equipment	30,000
165	Accumulated Depreciation		0
170	Land	25,000
180	Patent	1,200
190	Interest Receivable	-
200	Accounts Payable		61,500
220	Saleries Payable		0
230	Utilities Payable		2,000
240	Unearned Revenue		5,000
250	Note Payable		30,000
260	Tax Payable		0
270	Interest Payable		0
300	Common Stock		150000
310	Retained Earnings		0
320	Dividends	3,000
400	Service Revenue		33000
410	Interest Income		850
450	Gain on Sale		15000
500	Cost of goods sold	17,300
510	Salary Expense	4,000
515	Rent Expense	-
520	Utilities Expense	2,000
530	Depreciation Expense	-
540	Insurance Expense	-
550	Supplies Expense	-
560	Tax Expense	-
570	Interest Expense	-
590	Loss on Sales	-
	Total	$ 297,350	$ 297,350

Answer 1

Here I am Preparing Adjusting Entries in General Journal