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.

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Definitions:

Empirical

Relies on, deals with, or can be proven through watching or undergoing something firsthand rather than through theoretical or strictly logical means.

Comparative

Involving the assessment or analysis of similarities and differences between two or more entities.

Pragmatic

A practical approach to problems and affairs, focusing on the results and consequences of actions.