o https a mnowionnect.hmhetumunahttps%As. |qde99 Chp 1.11 Help Seve & Exit Exerc

Question

o https a mnowionnect.hmhetumunahttps%As. |qde99 Chp 1.11 Help Seve & Exit Exercise 5.5 Journalizing and posting adjustments. LO 5-5 Company must make three adjusting entries on December 31, 2019. totaling $15,000 were purchased on December 1, 2019, a. Supplies used, $9,500 (supplies and debited to the Supplies accoun) b. Expired insurance, $6,700, on December 1, 2019, the firm paid $40,200 for six months' insurance coverage in advance and debited Prepaid Insurance for this amount c. Depreciation expense for equipment, $4,300 Required: Prepare the journal entries for these adjustments and post the entries to the general ledger accounts Comsplete this question by entering your answers in the tabs below. General ounal a Ledger Prepare the journal entries for the above adjustments FS F7 F11 F12 96

Explanation / Answer

Adjustment entry Date Accounts Titles and explanation Debit in Dollars Credit in Dollars 31-Dec Suplies- expense A/C $9,500 Supplies stock A/C $9,500 (To record supplies used during the period) 31-Dec Insurance A/C 6700 Prepaid A/C 6700 (To record insurance expenses during the period) 31-Dec Depreciation A/C $4,300 Accumulated depreciation A/C $4,300 (To record depreciation of equipment) Total supplies increase the stock of supplies and when ever required it used by crediting stock. Insurance expense for one month = 40200/6 = 6700 Entries to the general ledger Supplies Account No 121 Date Debit Credit Balance Dec. 1 . 2019 15000 15000 Dec. 31. 2019 9500 5500 Prepaid expenses Account No 131 Date Debit Credit Balance Dec. 1 . 2019 40200 40200 Dec. 31. 2019 6700 33500 Accumulated Depreciation Account No 142 Date Debit Credit Balance Dec. 31. 2019 4300 4300 Depreciation expense Account No 517 Date Debit Credit Balance Dec. 31. 2019 4300 4300 Insurance expense Account No 521 Date Debit Credit Balance Dec. 31. 2019 6700 6700 Supplies expense Account No 523 Date Debit Credit Balance Dec. 31. 2019 9500 9500

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