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Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference

Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account.

Employees earned $300 in salaries that will be paid next month. The Salaries Expense unadjusted balance as of December 31 is $5,700.

Adjustment Type:

AccrualDeferrals/Prepaids

Salaries Expense

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

Salaries Payable

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

Completed services that were paid for six months earlier, $620. The Service Revenue unadjusted balance as of December 31 is $7,300. The Unearned Revenue balance as of December 31 is $9,800.

Adjustment Type:

AccrualDeferrals/Prepaids

Unearned Revenue

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

Service Revenue

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

Incurred interest expense of $3,400.

Adjustment Type:

AccrualDeferrals/Prepaids

Interest Expense

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

Interest Payable

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Nov. 1Nov. 15Dec. 1Dec. 31

Bal.

Bal.

A T is drawn. The vertical line divides the account into its left and right sides. The left side of the T-account is called the debit side and the right side is called the credit side. The account name is at the top, above the horizontal line.

Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names!

Incurred interest expense of $1,900

Date

Accounts and Explanation

Debit

Credit

Nov. 1Nov. 30Dec. 1Dec. 31Jan. 1

A two year insurance policy for $10,560 was purchased on November 1 of the current year. Record the transaction for the year ended December 31.

Date

Accounts and Explanation

Debit

Credit

Nov. 1Nov. 30Dec. 1Dec. 31Jan. 1

Employees earned $600 in salaries that will be paid next month.

Date

Accounts and Explanation

Debit

Credit

Nov. 1Nov. 30Dec. 1Dec. 31Jan. 1

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