Chapter 3 Accounting Lab Assignment

At this point, you need to prepare a number of adjusting entries for P Mont.

The adjusting entries should be entered into the journal in the QuickBooks software following the same procedure for recording regular entries in Lab 2. Each adjusting entry is dated 1/31.

Adjusting Entries:

January 31

1.19 The company prepaid 6 months of rent on January 3^rd. Adjust the appropriate accounts to show that one month of the rent was used in January.

1000

1000

1.20 Insurance was prepaid for 1 year on January 3^rd. Prepare an adjusting entry for January's insurance usage.

260

260

1.21Although some of the office supplies were used during January, you had not recorded individual transactions as each Office Supply item was taken from the office supply cabinet.When you counted the amount of office supplies left at the end of January, you found that $320 of supplies remained on hand.An adjusting entry is required.

500-320=180

320

1.22As with office supplies, you did not record each individual transaction as each Repair Supply item was removed from the repair supply cabinet.When you counted the amount of Repair Supplies still on hand, you found that there was $640 of Repair Supplies in the cabinet.An adjusting entry is required.

1.23 The Store Equipment purchased on January 3 was in use for almost a month.You estimate that the equipment will have a five-year useful life and will have a $500 salvage value at the end of the five-year period.

Complete the adjusting entry for January depreciation.

1.24The Unearned Revenue account on the trial balance showed that you still owe Jenny Chen three months worth of consulting services.However, you did work for half of January.Therefore, you made an adjusting entry to reflect that you completed part of the services for Jenny.

End of Adjusting Entries!