Prepaid expenses - Supplies

On December 15, XYZ Company was completely out of supplies, so the company purchased $1,500 of supplies on account. On December 31, a supply count revealed $200 of supplies were on hand.

Required

Record the entry for the purchase of supplies and for the year-end adjustment.

b.) Depreciation

XYZ Company purchases a new building for $720,000 on April 1, 2024. The building is fully financed by a mortgage. The building is expected to be useful for 20 years, after which time it will have no residual value. The company wishes to use straight-line depreciation.

Required

Record the journal entry for the purchase of the building and for the year-end adjustment.

c.) Accrued expenses - Salaries

XYZ Company pays salaries of $4,000 every Friday. The company has a 5-day workweek and is open from Monday to Friday. This year, the December 31 falls on a Thursday.