10.Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account.

Used office supplies of $610. The Office Supplies unadjusted balance on December 31 is $11,800.

Adjustment Type:___________ (Accrual or Deferrals/Prepaids)

Supplies Expense

Credit or debit ___________

Date _______

Bal ________

Office Supplies

Credit or debit ___________

Date _______

Bal. _______

11. A two year insurance policy for $5,280 was purchased on November 1 of the current year. Record the transaction for the year ended December 31.

Adjustment Type:___________ (Accrual or Deferrals/Prepaids)

Insurance Expense

Credit or debit ___________

Date _______

Bal. _______

Prepaid Insurance

Credit or debit ___________

Date _______

Bal. _______

Depreciation for the current year includes Equipment, $2,600. The Accumulated Depreciation - Equipment unadjusted balance as of December 31 is $7,100.

Adjustment Type:___________ (Accrual or Deferrals/Prepaids)

Depreciation Expense - Equipment

Credit or debit ___________

Date _______

Bal. _______

Accumulated Depreciation - Equipment

Credit or debit ___________

Date _______

Bal. _______

Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names!

Used office supplies of $500

Date

Accounts and Explanation

Debit

Credit

Employees earned $3,200 in salaries that will be paid next month.

Date

Accounts and Explanation

Debit

Credit

Completed services that were paid for six months earlier, $2,500

Date

Accounts and Explanation

Debit

Credit