Kee Company accumulates the following adjustment data at December 31. Indicate (a) the balance sheet account that requires adjustment and whether the identified balance sheet account is over-or understated before any adjustments are recorded. b] Balance sheet account Overstated or Understated (a) Balance sheet account Supplies of $100 are on hand. Kee Company started the year with $1,100 of supplies on hand. 2. Services were performed but not recorded. 3. Interest of $200 has accumulated on a note payable. Collected $650 of cash in advance before performing the related services. The services have now been performed Sheridan Company's general ledger showed $780 in the Supplies account on January 1, 2021. On May 31, 2021, the company paid $3.135 for additional supplies count on December 31, 2021, showed $930 of supplies on hand. Prepare the journal entry to record the purchase of supplies on May 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit May 31 On July 1, 2021, Blossom Company buys a three-year insurance policy for $15,300. Blossom Company has a December 31 year end. Journalize the purchase of the insurance policy. (Credit account titles are automatically indented when amount is entered. Do not indet man required, select "No Entry for the account titles and enter for the amounts) ne entry Date Account Titles and Explanation Debit Credit July 1 Carla Vista Co. paid $11,600 to purchase equipment on January 1, 2021. Carla Vista Co. has a December 31 fiscal year end and uses straight-line depreciation. The company estimates the equipment will have a 4-year useful life. Prepare the journal entry to record the purchase of the equipment on January 1.2021. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts.) Date Account Titles and Explanation Jan. 1/21 Sandhill Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended June 30, 2021. 1. Sandhill Paintball has a 5% note payable with its bank for $46,800. Interest is payable on a monthly basis on the first of the month 2. Sandhill Paintball is open seven days a week and employees are paid a total of $4,060 every Monday for a seven-day (Monday-Sunday workweek, June 30, 2021, is a Wednesday so employees will have worked three days (Monday-Wednesday) before the year end that they have not been paid for as at June 30, Employees will be paid next on Monday, July 5, 2021. Sandhill Paintball receives a commission from Pizza Shop next door for all pizzas sold to customers using the Sandhill Paintball facility. The amount owing for June is $590, which Pizza Shop will pay on July 7,2021. 4. The June utility bill for $375 was unrecorded on June 30. Sandhill Paintball paid the bill on July 9, 2021 5. Sandhill Paintball sold some equipment on June 1, 2021, in exchange for a $9,600,6% note receivable. The principal and interest are due on September 1, 2021 For each of the above items, prepare the adjusting entry required at June 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.)
