Prepare the Required End-Of-Period Adjusting Entries for Each Independent Case

question 117

Essay

Prepare the required end-of-period adjusting entries for each independent case listed below.
Case 1
Sleater-Kinney Company began the year with a $3000 balance in the Supplies account. During the year $8500 worth of additional supplies were purchased. A physical count of supplies on hand at the end of the year revealed that $7400 worth of supplies had been used during the year. No adjusting entry has been made until year end.
Case 2
Western Company has a calendar year-end accounting period. On July 1 the company purchased equipment for $30000. It is estimated that the equipment will depreciate $300 each month. No adjusting entry has been made until year end.
Case 3
Ranch Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $900 per month apartments and one tenant in the $1200 per month apartment had not paid their August rent as of August 31st.

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Definitions:

Uncontrollable Costs

Expenses that cannot be controlled or influenced by management in the short term.

Direct Expenses

Costs that can be directly tied to the production or sale of specific goods or services, such as raw materials and labor.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as manufacturing overhead, and must be allocated accordingly.

Controllable Costs

Expenses that a manager or a business can influence or regulate in the short term, such as supplies, utilities, and wages.