Listed Below Is Information Related to Several Adjusting Entry Situations

question 31

Essay

Listed below is information related to several adjusting entry situations.Assume that the accounting year ends on December 31. 1. $3,000 paad far insurance an October 1 far a ane-year period (October I -September 30). This transaction was recorded as a debit to prepaid insurance ($3,000) and a credit to cash (3.000).
2. Interest an bonds payable in the anount of $500 has not been recorded at December 31.
3. Rent exgense in the andust of $1,200 was paid an November 1. This transaction was recarded a5 a debit to rent exgense ($1,200) and a credit to cash ($1,200). This rent payenent was for the period November 1 to January 31.
Required:
Record the original entries and the adjusting entries using T-accounts.

---

Definitions:

Competing Stores

Retail or service establishments that offer similar products or services targeting the same customer base, and thus are in direct competition with each other.

Expense Items

Costs incurred by a business or individual in the course of achieving income or maintaining operations, such as rent, salaries, or utilities.

Component Parts

Individual items that are put together to form a product or can be used as part of a more complex assembly.

Raw Materials

Basic materials from which products are made, typically unprocessed or only slightly processed and used in the manufacturing or production process.