Question
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 |
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| Interest Income |
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b. | Property Taxes Expense |
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| Property Taxes Payable |
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c. | Unearned Legal Fees |
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| Legal Fees Earned |
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d. | Insurance Expense |
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| Prepaid Insurance |
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e. | Salaries Expense |
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| Salaries Payable |
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f. | Accounts Receivable |
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| Service Revenue Earned |
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