Question

Problem 3-2A (Part Level Submission) The Bramble Corp. opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. Bramble Corp. Trial Balance May 31, 2019 Account Number Debit Credit 101 Cash $ 3,500 126 Supplies 2,100 130 Prepaid Insurance 2,400 140 Land 12,000 141 Buildings 59,100 149 Equipment 14,900 201 Accounts Payable $ 11,100 208 Unearned Rent Revenue 3,300 275 Mortgage Payable 40,000 311 Common Stock 35,100 429 Rent Revenue 9,400 610 Advertising Expense 650 726 Salaries and Wages Expense 3,400 732 Utilities Expense 850 $98,900 $98,900 In addition to those accounts listed on the trial balance, the chart of accounts for Bramble Corp. also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2019. 2. A count of supplies shows $700 of unused supplies on May 31. 3. Annual depreciation is $2,952 on the buildings and $1,488 on equipment. 4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $800 are accrued and unpaid at May 31. (a) Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31

Answer 1

		Adjusting Entries:
No.	Date	Account Titles and Explanation	Debit	Credit
1	31-May	Insurance Expense a/c ($2,400*1/12)	$200
		To Prepaid Insurance a/c		$200
		[Amortization of Prepaid Insurance to Insurance Expense a/c for May month]
2	31-May	Supplies Expense a/c ($2,100 - $700)	$1,400
		To Supplies a/c		$1,400
		[Adjustment of Supplies to Supplies Expense for the used supplies]
3	31-May	Depreciation Expense a/c	$4,440
		Accumulated Depreciation - Buildings a/c		$2,952
		Accumulated Depreciation - Equipment a/c		$1,488
		[Depreciation charged on Buildings and Equipment for May month]
4	31-May	Interest Expense a/c ($40,000*12%*1/12)	$400
		Interest Payable a/c		$400
		[Mortgage Interest Accrued for the May Month]
5	31-May	Unearned Rent Revenue a/c	$2,200
		To Rent Revenue a/c ($3,300*2/3)		$2,200
		[Adjustment of Unearned Rent Revenue to Rent Revenue when earned]
6	31-May	Salaries and Wages Expense a/c	$800
		Salaries and Wages Payable a/c		$800
		[Salaries accrued but not paid has been recorded]