4. In the journal provided, prepare adjusting entries for the following items. Omit explanations.

a. Depreciation on machinery is $940 for the accounting period.

b. Interest incurred on a loan but not paid or recorded is $635.

c. Office supplies of $600 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $200. At the end of the period, $80 in office supplies remained.

d. Commissions amounting to $540 were earned but not recorded or collected by year end.

e. Prepaid Rent had an $8,000 normal balance prior to adjustment. By year end, 40 percent had expired.

ANS:

General Journal					Page 1
Date	Description		Post. Ref.	Debit	Credit
a.	Depreciation ExpenseMachinery
		Accumulated DepreciationMachinery
b.	Interest Expense
		Interest Payable
c.	Office Supplies Expense
		Office Supplies
d.	Accounts Receivable
		Commissions Earned
e.	Rent Expense
		Prepaid Rent