Journalize the adjusting entries needed on December 31, the end of the current a

ID: 2425800 • Letter: J

Question

Journalize the adjusting entries needed on December 31, the end of the current accounting period for blue Inc. using the following data:

a. The balance in Office Supplies before adjustment is $6,200. A physical count reveals $4,350 of supplies on hand at December 31.

b. A computer was purchased on January 1 for $20,000. The computer has a useful life of 4 years and is depreciated in the amount of $5,000 per year

c. A one year insurance policy costing $6,960 was purchased on September 1

d. Employee salaries are owed for 2 days of a regular 7-day work week. Weekly payroll, $8,050

e. Unearned Maintenance Revenue has a balance of $19,000 before adjustment. Records that $7,800 of that amount has been earned by December 31.

- Required: Prepare the appropriate adjusting journal entries to record these transactions.

Date Particulars Debit Amount Credit Amount

Jan-1 Computer Account -----------------------Dr $20000

To Cash Account $20000

(Being computer Purchased For $20000)

Sep-1 Prepaid Insurance Account -----------------------Dr $6960

To Cash Account $6960

(Being Insurance policy Purchased for $6960)

Dec-31 Insurance Expense A/c-----------------DR $2320

ToPrepaid Insurance A/c $2320

(insurance Expenses Calculated for this Year.i.e 6960*4/12)

Dec-31 Depreciation Account--------------------Dr $5000

To Computer Account $5000

(Depreciation of computerCalculated for one year)

Dec-31 Unearned Maintanance RevenueA/c------Dr $7800

To Maintenance Revenue $7800

(Earned Maintance Revenue Adjusted from Unearned A/c)

Dec-31 Office Supplies Expenses A/c-------------------Dr $1850

To Offices Supplies A/c $1850

( actual Office supplies used for this year .i.e 6200-4350)

Dec-31 Employees salaries Expense A/c-------------Dr $2300

To Salaries payable A/c $2300

(Employee salary expenses booked for this period but

not yet paid .i.e 8050*2/7=2300)

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