Adjusting Entries E 11. Prepare year-end adjusting entries for each of the follo

Question

Adjusting Entries

E 11. Prepare year-end adjusting entries for each of the following:

1. Office Supplies has a balance of $336 on January 1. Purchases debited to

Office Supplies during the year amount to $1,660. A year-end inventory

reveals supplies of $1,140 on hand.

2. Depreciation of office equipment is estimated to be $2,130 for the year.

3. Property taxes for six months, estimated at $1,800, have accrued but have

not been recorded.

4. Unrecorded interest income on U.S. government bonds is $850.

5. Unearned Revenue has a balance of $1,800. Services for $750 received in

advance have now been performed.

6. Services totaling $800 have been performed; the customer has not yet been

billed.

Explanation / Answer

SUpplies consumed = Op Bal + Purch - Closing Bal = 336+1660-1140 = 856 1. Dec. 31, 20xx Supplies Expense DR 856 Supplies Cr 856 SUpplies used during year 2. Dec. 31, 20xx Depreciation Expense - Equipment Dr 2130 Accumulated Depreciation - Equipment Cr 2130 Depreciation during the year 3. Dec. 31, 20xx Property Tax Expense Dr 1800 Propety Tax Liability Cr 1800 4. Dec. 31, 20xx Int Rxable Dr 850 Int income Cr 850 5. Dec. 31, 20xx Unearned Rvenue Dr 750 Revenue Cr 750 6. Dec. 31, 20xx Accounts Receivable Dr800 Revenue Cr 800

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