Record the December 31 Adjusting Entries for the Following Transactions

question 209

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.

---

Definitions:

Job Evaluations

The systematic process of determining the value and importance of a job in relation to other jobs within an organization.

Pay Structure

A system that outlines how employees are compensated, including wage scales, salaries, bonuses, and raises, based on their role, experience, and performance.

Equal Employment Opportunity Laws

Regulations designed to ensure that all individuals have an equal chance for employment, without discrimination on the basis of race, color, religion, sex, national origin, age, disability, or genetic information.

Equal Pay

The principle that individuals should receive the same remuneration for work of equal value, without discrimination based on gender, ethnicity, or other unrelated factors.