1. During the month, the Supplies (asset) account was debited $5,100 for supplies purchased. The cost of supplies used during the month was $3,700. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month.
2. An insurance premium of $460 was paid for the coming year. Prepaid Insurance was debited.
3. Wages of $3,250 were paid for the current month.
4. Interest revenue of $290 was received for the current month.
5. Accrued $640 of commissions payable to sales staff for the current month.
6. Accrued $110 of interest expense at the end of the month.
7. Received $2,225 on accounts receivable accrued at the end of the prior month.
8. Purchased $600 of merchandise inventory from a supplier on account.
9. Paid $100 of interest expense for the month.
10. Accrued $860 of wages at the end of the current month.
11. Paid $540 of accounts payable.

Required:

1. Indicate the financial statement effect.
2. Prepare the journal entry for the above transactions.

• Required A
• Required B

Indicate the financial statement effect.

Transaction or Adjustment	Balance Sheet Category					Income Statement
	Assets	=	Liabilities	+	Stockholders' Equity	Net Income Effect
a.	Supplies -3,700					Supplies expense -3,700
b.	Cash -460
b.
c.	Cash -3,250
d.
e.
f.
g.
g.

help fill these out

No	Event	General Journal	Debit	Credit