In General Journal Form, Record the December 31 Adjusting Entries

question 28

Essay

In general journal form, record the December 31 adjusting entries for the following transactions and events. 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 three-year fire insurance policy that was purchased on October 1 of the current year.
b. The Office 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 office equipment is $600.
e. Accrued salaries amount to $400.

---

Definitions:

Federal Reserve

is the central banking system of the United States, responsible for managing the nation's monetary policy and overseeing its banking institutions.

Automatic Stabilizers

Programs such as unemployment insurance benefits and taxes that are already on the books to help alleviate recessions and hold down the rate of inflation.

Government Surplus

The situation where a government's revenue exceeds its expenditures during a given timeframe, indicating a positive fiscal balance.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.