ADJUSTING ENTRIES WHAT ACCOUNT TO CREDIT AND DEBIT - The ending store and shop s

Question

ADJUSTING ENTRIES

WHAT ACCOUNT TO CREDIT AND DEBIT

- The ending store and shop supplies inventory is $2,118.00.  

- Storage Fees Earned for the quarter total $10,450.00.

- Wages accrued total 8.5 hours worked at $11.30 per hour.

- Additionalincometaxesexpensefortheperiodtotal $2,520.00.

- Accrue the interest on the short-term notes receivable. Calculate the interest to the nearest cent. Use the 360-day banker's year for all interest computations and record a single adjusting entry for the short-term interest.

Note Receivable: $10,000, 9.0%, 60-day note, dated June 22

Explanation / Answer

Adjusting Entries Account Title Dr $ Cr$ Shop & Store Supplies Expense Opening Stock-2,118 Shop & Store Supplies Inventory Opening Stock-2,118 Other Income-Storage Fees                                 10,450 Accounts Receivable -Other                                 10,450 (assuming storage fees earned not received) Wages Expense                                    96.05 Wages Payable                                    96.05 Income Tax expense                                    2,520 Income Tax Payable                                    2,520 Interest Income                                       150 Accrued Interest                                       150 As the date of adjusting entry not given, assumed that 60 days interest accrued on Note .

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