James Co. Trial Balance Adjustments Adjusted Balances Debits Credits Debits Cred

Question

James Co. Trial Balance Adjustments Adjusted Balances Debits Credits Debits Credits Debit Credit 55,200 3,600 3,000 25,000 Cash Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Interest Payable Notes Payable Unearned Rent Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Supplies Expense Interest Expense Insurance Expense 8,400 20,000 12,400 60,000 14,000 An analysis of the accounts shows the following: 1. The equipment depreciated at $280 per month 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $400 is accrued on the notes payable. 4. Supplies on hand total $850 5. Insurance expires at the rate of $400 per month. Prepare the adjusting journal entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable and Supplies Expense

Explanation / Answer

Un adjusted Adjusted Adjusted Balance Debit Credit Debit Credit Debit Credit Cash 55200 55200 Prepaid Insurance 3600 1200 2400 Supplies 3000 2150 850 Equipment 25000 25000 Accumulated Depreciation Equipment 8400 840 9240 Interest Payable 1200 1200 Note Payable 20000 20000 Unearned rent Revenue 12400 6200 6200 Rent Revenue 60000 6200 66200 Salaries and Wages 14000 14000 Depreciation Expense 840 840 Supplies Expense 2150 2150 Interest Expense 1200 1200 Insurance Expense 1200 1200 Total 100800 100800 11590 11590 102840 102840 Debit Credit Depreciation Expense 840 Accumulated Depreciation Equipment 840 Unearned rent Revenue 6200 Rent Revenue 6200 Interest Expense 400 Interest Payable 400 Supplies Expense 2150 Supplies 2150 Insurance Expense 1200 Prepaid Insurance 1200

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