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5. In the journal provided, prepare adjusting entries for the following items. Omit explanations. a. Unrecorded interest on savings bonds is $680. b. Property taxes

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

a. Unrecorded interest on savings bonds is $680.

b. Property taxes incurred but not paid or recorded amount to $540.

c. Legal fees of $5,000 were collected in advance. By year end, 60 percent were still unearned.

d. Prepaid Insurance had a $1,600 debit balance prior to adjustment. By year end, 40 percent was still unexpired.

e. Salaries incurred by year end but not yet paid or recorded amounted to $1,375.

f. Services totaling $900 have been performed but not yet recorded or billed.

ANS:

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit

a.

Interest Receivable

Interest Income

b.

Property Taxes Expense

Property Taxes Payable

c.

Unearned Legal Fees

Legal Fees Earned

d.

Insurance Expense

Prepaid Insurance

e.

Salaries Expense

Salaries Payable

f.

Accounts Receivable

Service Revenue Earned

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