Prepare Adjusting Entries for the Following Transactions

question 205

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is $1,340 for the accounting period.
2. Interest owed on a loan but not paid or recorded is $275.
3. There was no beginning balance of supplies and $550 of office supplies were purchased during the period. At the end of the period $100 of supplies were on hand.
4. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $700 had expired.
5. Accrued salaries at the end of the period amounted to $900.

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Definitions:

Entire Economy

The entire economy refers to the sum total of all economic activities and interactions within a country or region.

Scientific Method

The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypotheses to obtain theories, principles, and laws.

Economists

Professionals who study and analyze economies, including their production, distribution, and consumption of goods and services.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.