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adjusting journal entries

adjusting journal entries

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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After reviewing the statements, you realize you have a couple of adjustments to make. Prepare adjusting journal entries for the following: (If no entry is required, select No debit or No credit in the account fields) a.Your workers used $120 worth of cleaning supplies in December. b. You forgot to record December's depreciation expense. You have been been depreciating equipment straight line assuming a salvage value of $100 and a service life of 5 years. c. You just received notice from the bank this afternoon that they had withdrawn your December equipment loan payment directly from your account. The total payment was $150. $5 of that amount represented December interest. Account To recognize cleaning supplies used in December To recognize depreciation expense for December To record December loan payment Debit Credit
Transcribed Image Text:After reviewing the statements, you realize you have a couple of adjustments to make. Prepare adjusting journal entries for the following: (If no entry is required, select No debit or No credit in the account fields) a.Your workers used $120 worth of cleaning supplies in December. b. You forgot to record December's depreciation expense. You have been been depreciating equipment straight line assuming a salvage value of $100 and a service life of 5 years. c. You just received notice from the bank this afternoon that they had withdrawn your December equipment loan payment directly from your account. The total payment was $150. $5 of that amount represented December interest. Account To recognize cleaning supplies used in December To recognize depreciation expense for December To record December loan payment Debit Credit
You run a small housecleaning business to help you pay for college. You hire other students on an hourly basis and do all the scheduling and bookkeeping yourself. Here's the trial balance for your company at 12/31/x2 (your second year of operations): My HouseCleaning Business Trial Balance December 31, 20x2 Debit Credit 2,000 2,000 450 4,300 Cash Accounts Receivable Cleaning Supplies on hand Equipment Accumulated Depreciation Equipment Accounts Payable Equipment Loan Payable Common Stock Retained Earnings Service Revenue Worker wages Cleaning supplies expense Gas expense Business taxes and insurance Depreciation expense interest expense 14,075 2,685 875 525 770 1,610 20 1,500 500 150 24,000 100 27,780 27.760 After reviewing the statements, you realize you have a couple of adjustments to make
Transcribed Image Text:You run a small housecleaning business to help you pay for college. You hire other students on an hourly basis and do all the scheduling and bookkeeping yourself. Here's the trial balance for your company at 12/31/x2 (your second year of operations): My HouseCleaning Business Trial Balance December 31, 20x2 Debit Credit 2,000 2,000 450 4,300 Cash Accounts Receivable Cleaning Supplies on hand Equipment Accumulated Depreciation Equipment Accounts Payable Equipment Loan Payable Common Stock Retained Earnings Service Revenue Worker wages Cleaning supplies expense Gas expense Business taxes and insurance Depreciation expense interest expense 14,075 2,685 875 525 770 1,610 20 1,500 500 150 24,000 100 27,780 27.760 After reviewing the statements, you realize you have a couple of adjustments to make
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