#1). For each of the following 5 conditions, insert the appropriate number into each blank to indicate the type of adjusting journal entry that is required at the end of September.

Adjustment type

1 Converting Assets to Expenses 2 Converting Liabilities to Revenue 3 Accruing Unpaid Expenses 4 Accruing Uncollected Revenue

Adjustment

Type

___ a. Sunset Vineyards delivered $60,000 of wine in September to customers who paid in August.

___ b. During September Sunset Vineyards used $12,000 worth of glass bottles from its inventory of supplies.

___ c. Sunset Vineyards owes $8,000 in wages to its employees at the end of September. Because Sunset pays employees bi-weekly, these wages will not be paid until the first week in October.

___ d. Sunset Vineyards shipped $125,000 of wine to its wholesale customers in September. These customers are billed and pay those bills in October.

___ e. Sunset Vineyards has a balance of pre-paid insurance of $12,000 at the beginning of September. $4,000 of that insurance was used in September.

#2). Prepare an adjusting journal entry for A through D

Possible Accounts (not all may be appropriate):

Prepaid Insurance Wine Sales Revenue Unearned Revenue Wages Payable Accounts Receivable Wage Expense Supplies Inventory Insurance Expense Supplies Expense Cash Accounts Payable

Sample Format:

dr Cash (+A) $xxxxx cr Equipment (-A) $xxxx