Record the December 31 Adjusting Entries for the Following Transactions

question 93

Essay

Record the December 31 adjusting entries for the following transactions and events in general journal form.Assume that December 31 is the end of the annual accounting period.
a.The Prepaid Insurance account shows a debit balance of $2,340,representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to-date.
b.The Store Supplies account has a debit balance of $400;a year-end inventory count reveals $80 of supplies still on hand.
c.On November 1 of the current year,Rent Earned was credited for $1,500.This amount represented the rent earned for a three-month period beginning November 1.
d.Estimated depreciation on store equipment is $600.
e.Accrued salaries amount to $1,400.

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Definitions:

Mammals

Warm-blooded vertebrate animals with hair or fur, females of which secrete milk for the nourishment of the young.

Developed Nations

Countries with a high level of economic development, characterized by high income per capita, advanced technology, and a well-developed infrastructure.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of voluntary movement and sensory reception.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.