$9\mathrm{.}1$ Adjusting Entries Student Worksheet

Questions

Exercises

Complete the following table for Supplies $($fill in the blank number$)$:

Complete the following table for Prepaid Insurance $($fill in the blank number$)$: The year$-$end trial balance figure dated Dec $3120--$ for Kareem Industries showed the following:

Supplies at $$5050$

Prepaid Insurance at $$2100$

The senior accountant was given the following information:

An inventory count of Supplies revealed $$1450$ on hand.

The Prepaid Insurance account consisted of one $12-$month insurance policy purchased on July $1,20--$

An invoice for Advertising done in December arrived in January,$20-1.$ The amount of the invoice was for $$1000$

Complete the $3$ adjusting entries in the journal paper below $($l$\text{'}$ve highlighted things to not forget when doing this on your own$)$Adjustments The year$-$end trial balance figure dated Dec $3120--$ for Kareem Industries showed the following:

Supplies at $$5050$

Prepaid Insurance at $$2100$

The senior accountant was given the following information:

An inventory count of Supplies revealed $$1450$ on hand.

The Prepaid Insurance account consisted of one $12-$month insurance policy purchased on July $1,20--$

An invoice for Advertising done in December arrived in January,$20-1.$ The amount of the invoice was for $$1000$

Complete the $3$ adjusting entries in the journal paper below $($l$\text{'}$ve highlighted things to not forget when doing this on your own$)$

A one$-$year insurance policy was purchased on Aug $1,20-1$ for $$648$

Calculate the "Insurance Expense" for December $31,20-1$

Calculate the "Balance that would be left in your Insurance account after this adjustment. Complete the table below and then do the Adjustments $($Adjusting Journal Entries$)$ for

each of the following insurance policies:

$1$ What is an adjustment $($adjusting entry$)?$

$2$ Why are they necessary?

$3$ Why are accounts allowed to become inexact $($out$-$of$-$date$)$ between statement dates?

$4$ What are the main GAAPs that govern adjusting entries?

Supplies Adjustments

$1$ What does the balance in your supplies account represent throughout the accounting period before you adjust it$?$

$2$ What must be done at the end of the fiscal period to determine what the balance of supplies account should be$?$

$3$ What is the basic adjustment for supplies? $($what do you always DR and what do you always CR$?)$

Prepaid Insurance Adjustment

$1$ What is a prepaid account? $($be careful, they can sometimes be called prepaid expenses even though they are assets.

$2$ Give examples of $2$ prepaid type of accounts?

$3$ What is the most common?

$4$ Where are prepaid expenses listed on the Balance Sheet?

$5$ What account do you DR when you purchase insurance ahead of time for the year?

$6$ What is the adjustment for Insurance at the end of the accounting cycle?

Late Bills

$1$ What is a late purchase invoice?

$2$ What account is the CR for all late bills?