Griesbach, Inc., prepares monthly financial statements. The September 30,2012, t
ID: 2492569 • Letter: G
Question
Griesbach, Inc., prepares monthly financial statements. The September 30,2012, trial balance reveals the following: An inventory of supplies reveals that only S675 arc on hand at the end of the month. Of the unearned rent revenue, S600 remains unearned. The note payable was taken out on September 1, 2012, for 12 months, at 10%. Lastly, the weekly payroll is S3,600. Employees arc paid each Friday for a 5-day work week, and September 30 is a Wednesday. Assuming Griesbach, Inc. has a year end of September 30, prepare the appropriate adjusting journal entries. Palmer Pen Co. has the following adjusted trial balance:Explanation / Answer
(IV)
(a)
DR Cost of goods sold $525**
Supplies $525
(To record supplies used in production)
**1,200 - 675 = 525
(b)
DR Unearned rent expense $1,200**
Rent expense $1,200
(To record rent expense)
**1,800 - 600 = 1,200
(c)
DR Interest on bond $375**
Interest payable $375
(To record bond interest payable(
**$45,000 x 10% x (1/12) = $375 for month of Sept 2012
(d)
DR Wages payable $3,600
Wages expense $3,600
(To record accrued wages)
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