Record the December 31 Adjusting Entries for the Following Transactions

question 93

Essay

Record the December 31 adjusting entries for the following transactions and events in general journal form.Assume that December 31 is the end of the annual accounting period.
a.The Prepaid Insurance account shows a debit balance of $2,340,representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to-date.
b.The Store Supplies account has a debit balance of $400;a year-end inventory count reveals $80 of supplies still on hand.
c.On November 1 of the current year,Rent Earned was credited for $1,500.This amount represented the rent earned for a three-month period beginning November 1.
d.Estimated depreciation on store equipment is $600.
e.Accrued salaries amount to $1,400.

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Definitions:

Community Assessment

A comprehensive evaluation of the needs, resources, and issues existing within a defined community.

Household Income

The total amount of money earned by members of a single household, often used to gauge economic status or eligibility for financial assistance programs.

Public Assistance

Governmental programs designed to provide financial aid or services to individuals or families in need.

Educator Role

The responsibility of teaching, training, or providing educational support, often within a specific profession or subject matter.