Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (+) or subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. The first transaction is provided as an illustration. a. During the month, the Supplies (asset) account was debited $1,900 for supplies purchased. The cost of supplies used during the month was $1,150. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b. An insurance premium of $420 was paid for the coming year. Prepaid Insurance was debited. c. Wages of $3,450 were paid for the current month. d. Interest revenue of $240 was received for the current month. e. Accrued $690 of commissions payable to sales staff for the current month f. Accrued $160 of interest expense at the end of the month. g. Received $2,350 on accounts receivable accrued at the end of the prior month. h. Purchased $660 of merchandise inventory from a supplier on account i. Paid $140 of interest expense for the month. J. Accrued $860 of wages at the end of the current month. k. Paid $550 of accounts payable. Required: a. Indicate the financial statement effect. b. Prepare the journal entry for the above transactions. Required A Required B ndicate the financial statement effect. Balance Sheet Category Income statement ansaction justment Assets Liabilities Stockholders Equity Net Income Effect Supplies -1,150 Supplies Exp -1,150 Required 8 > Journal entry worksheet 2 3 4 5 6 7 8 11 Record the $1,900 supplies used during the month whereas supplies Expense was debited $1,150 for supplies purchased. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Record the $3,450 wages paid for the current month. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Record the $240 interest received for the current month. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Journal entry worksheet Record the $160 interest accrued at the end of the month. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the purchase of $660 merchandise inventory from a supplier on account. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the $140 interest expense paid for the month. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
