Prepare adjusting entries using the following information in the General Journal

Question

Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of repair supplies is $388.

c) The estimated depreciation on repair equipment is $140.

d) The estimated income taxes are $80.




Parkview Landscaping Corporation
Trial Balance
July 31



DR CR
Cash $21,356
Prepaid Insurance $2,200
Landscaping Supplies $380
Landscaping equipment $8,800
Accts. Payable $7,980
Common Stock $24,000
Landscaping Rev. $5,344
Rent Expenses $2,080
Utility Expenses $308
Insurance Expenses $200
Supplies Expenses $400
Dividends paid $1,600

done
37324 37324

Explanation / Answer

A.) Debit Insurance expense 200 Credit prepaid insurance according to the balance, insurance expense monthly is $200, thus B.) Debit Supplies 8 Credit Supplies Expense 8 Supplies remaining is 388, yet balance shows 380, rectify this with a debit C.) Debit depreciation expense 140 Credit accumulated depreciation 140 D.) Debit Income Tax Expense 80 Credit Income Tax Payable 80

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