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Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.

Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.
Transcribed Image Text:Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.
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