Question
Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. Required:
Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. Required: Prepare to adjust journal entries, as needed, for the following items as of December 31, 2021. 1. The Supplies account shows a balance of $540, but a count of supplies reveals only $210 on hand. 2. Flint Hills initially records the payments of all insurance premiums as prepaid insurance. The trial balance shows a balance of $420 in Prepaid Insurance. A review of insurance policies reveals that $125 of insurance is unexpired. 3. Flint Hills employees work Monday through Friday, and salaries of $2,400 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. 4. On November 1, 2021, Flint lent $30,000 to another company. A note was signed with principal and 8% interest to be paid on October 31, 2022.
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