ACC 100-01 Chapter 5 Homework 5.5 and 5.1A

Exercise 5.5 "Journalizing and posting adjustments" Problem 5.1A "Complete the entire worksheet" Journalizing and posting adjustments. Lancaster Company must make three adjusting entries on December 31,20X1. a. Supplies used, $11,000 (supplies totaling $18,000 were purchased on December 1, 20X1, and debited to the Supplies account). b. Expired insurance, $8,200; on December 1,20X1, the firm paid $49,200 for six months' insurance coverage in advance and debited Prepaid Insurance for this amount. c. Depreciation expense for equipment, $5,800. Make the journal entries for these adjustments and post the entries to the general ledger accounts: Use page 3 of the general journal for the adjusting entries. Use the following accounts and numbers. Problem 5.1A Completing the worksheet. Objectives 52,53 The trial balance of Ortiz Company as of January 31,20X1, after the company completed the first month of operations, is shown in the partial worksheet below. INSTRUCTIONS Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $4,200; expired insurance, $5,500; depreciation expense on equipment for the period, $1,600. Analyze; How does the insurance adjustment affect Prepaid Insurance? Ortiz Company Worksheet (Partial) Month Ended January 31. 20X1