Prepare Adjusting Entries for the Following Transactions

question 114

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is $1,050.
2. Interest incurred and owed on a loan but not paid or recorded is $275.
3. There was a beginning balance of supplies of $120 and the company purchased $400 of office supplies during the period. At the end of the year $70 of supplies were on hand.
4. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $400 had expired.
5. Accrued salaries at year end were $1,100.

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Definitions:

Gift-Giving Ritual

A social and cultural practice involving the giving of gifts as part of a ceremony or celebration, often symbolizing goodwill, respect, or social bonds.

Overtime

refers to time worked by an employee beyond their regular working hours, typically compensated at a higher rate.

Private Bill

A proposal for a law that would apply to a particular individual or group of individuals, or corporate entity, unlike public bills which apply to everyone within their jurisdiction.

Citizenship

The status of being a citizen, entailing specific rights, duties, and privileges; typically involves a legal relationship between an individual and a nation-state.