Prepare Adjusting Entries for the Following Transactions

question 52

Essay

Prepare adjusting entries for the following transactions:
(a)The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies.(b)The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded.(c)The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday.(d)The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned.(e)At the end of the month $5,700 of services had been performed but not yet billed.

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Definitions:

Atom

The fundamental unit of a chemical element, made up of a core of protons and neutrons, with electrons circling this core.

Elements

Pure substances consisting of only one type of atom, distinguished by their atomic number.

Simplest Form

The reduction of a fraction, equation, or expression to its most basic form, eliminating all complexities.

Compounds

Substances formed by the chemical combination of two or more elements in definite proportions.