eyPLUS elel saten.Aandcethnt The ledger of Armour Lake Lumber Supply on July 31,

Question

eyPLUS elel saten.Aandcethnt The ledger of Armour Lake Lumber Supply on July 31, 2020, includes the selected accounts below before adjusting enties have been prepared. Supplies Prepaid Rent Buildings $24,000 3,600 50,000 140,000 Unearned Service Revenue 11,500 An analysis of the company's accounts shows the following 1. The notes payable pays interest at a rate of 6% per year. 2. Supplies on hand at the end of the month totaled $18,600 3. The balance in Prepaid Rent represents 4 months of rent costs 4 Employees were owed $3,100 related to unpaid salaries and wages. 5. Depreciation on buildings is $6,000 per year ounng the month, the compeny satited obligations worth e,700 rested to the uncesmed Services sevenue 7. Unpaid maintenance and repairs costs were $2,300 Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly Use additional accounts as needed. (Credit account tities are automatically indented amount is entered. Do not indent Account Titles and Explanation uly 31 July 31 31

Explanation / Answer

Answer: The adjusting entries would be as follows: Journal Entries Date Account title and explanation Debit Credit Jul-31 Interest expenses $                    100 ($20,000*6%*1/12months) Interest payable $                    100 (To record interest used) Jul-31 Supplies expense $                 5,400 (24000-18600) Supplies $                 5,400 (To record supplies used) Jul-31 Rent expenses $                    900 (3600/4 months*1 monh) Prepaid rent $                    900 (To record rent used) Jul-31 Salaries and wages expense $                 3,100 Salaries and wages payable $                 3,100 (To record accrued salaries and wages) Jul-31 Depreciation expense $                 6,000 Accumulateddepreciation-Building $                 6,000 (To record monthly depreciation) Jul-31 Unearned Service Revenue $                 4,700 Service Revenue $                 4,700 (To record revenue used) Jul-31 Maintenance and repair expenses $                 2,300 Maintenance and repair payable $                 2,300 (To record expense used)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.