Chapter 4, Problem 10E

Recording Transactions Including Adjusting and Closing Entries (Nonquantitative)

The following accounts are used by Britt’s Knits. Inc.

Codes	Accounts		Codes	Accounts
A	Cash		J	Common Stock and Additional Paid-in Capital
B	Office Supplies		K	Retained Earnings
C	Accounts Receivable		L	Service Revenue
D	Office Equipment		M	Interest Revenue
E	Accumulated Depreciation		N	Wage Expense
F	Note Payable		O	Depreciation Expense
G	Wages Payable		P	Interest Expense
H	Interest Payable		O	Supplies Expense
1	Unearned Service Revenue		R	None of the above

Required:

For each of the following nine independent situations, prepare the journal entry by entering the appropriate code(s) and amount(s). The first transaction is used as an example.

Independent Situations	DEBIT		CREDIT
	Code	Amount	Code	Amount
a. Accrued wages, unrecorded and unpaid at year-end. $400 (example).	N	400	G	400
b. Service revenue earned but not yet collected at year-end. $600.
c. Dividends declared and paid during the year. $900.
d. Office supplies on hand during the year. $100: supplies on hand at year-end. $160.
e. Service revenue collected in advance and not yet earned. $800.
f. Depreciation expense for the year. $1,000.
g. At year-end. interest on note payable not yet recorded or paid. $220.
h. Balance at year-end in Service Revenue account. $56,000. Prepare the closing entry at year-end.
i. Balance at year-end in Interest Expense account. $460. Prepare the closing entry at year-end.