Adjusting Entries

1. Prepaid Insurance account began the year with a balance of $230. During the year, insurance in the amount of $570 was purchased. At the end of the year (12/31), the amount of insurance still unexpired was $350. Prepare the year end adjusting entry.

2. The Supplies account began the year with a balance of $190. During the year, supplies in the amount of $490 were purchased. At the end of the year (12/31), the inventory of supplies on hand was $220. Prepare the year end adjusting entry.

3. The depreciation expense on office equipment for the month of March is $50. This is the third month that the office equipment, which cost $950, has been owned. Prepare the adjusting entry for March and show the Balance Sheet presentation for Office Equipment and related accounts after the adjustment.

4. Wages are paid every Saturday for a five day work week (Mon Fri). Wages are $2,000 per week. Prepare the adjusting entry on June 30, assuming July 1 falls on a Wednesday.

5. On October 3, a deposit in the amount of $5,000 was received for services to be performed. By the end of the month, services in the amount of $1,200 were performed. Prepare journal entries for the original receipt of the deposit and the adjusting entry on 10/31.

6. On November 12, Smith Company received $8,000 in advance of services to be rendered over the next two months ($4,000 per month December and January). Prepare all the associated journal entries in regards to this business transaction. (hint: three journal entries)

7. On October 4, Smith Company rendered services valued at $11,000. The client will pay for the services November 1.

8. At year end, property taxes for six months, estimated at $2,000, have accrued but have not been recorded. Prepare the adjusting entry at year end (12/31).

9. At year end, unrecorded interest receivable from the US Government bonds is $1,700. Prepare the adjusting entry at year end (12/31).

10. At year end, unrecorded interest expense due to creditors was $1,100 (payable in the next year). Prepare the adjusting entry at year end (12/31).