Prepare journal entries on December 31 to record the following unrelated year-end adjustments. TheSupplies account on January 1 had a balance of $500. During the year the company bought $2,500 of supplies which was debited to the Supplies account. A count of the supplies on hand on December 31 showed there was $400 of supplies left. A machine costing $5,000 was purchased two years ago. When it was bought, it had an estimated life of 5 years. On September 1, a property owner received 6 month’s rent in advance from a tenant whose rent is $550 per month. The $3,300 was credited to the Unearned Rent account.

The objective of the question is to prepare the year-end adjustment journal entries for the given…

Answered: Prepare journal entries on December 31…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Prepare journal entries on December 31 to record the following unrelated year-end adjustments.

TheSupplies account on January 1 had a balance of $500. During the year the company bought $2,500 of supplies which was debited to the Supplies account. A count of the supplies on hand on December 31 showed there was $400 of supplies left.

A machine costing $5,000 was purchased two years ago. When it was bought, it had an estimated life of 5 years.

On September 1, a property owner received 6 month’s rent in advance from a tenant whose rent is $550 per month. The $3,300 was credited to the Unearned Rent account.

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