lournalize the required adjusting entries for the year ended December 31 for But

Question

lournalize the required adjusting entries for the year ended December 31 for Butler Spa and Pool Accessories. Butler Spa and Pool Accessories uses the periedic inventory sytem b On December 31, a physical count of inventory was taken. The physical count amounted to $21.959 The Merchandise Inventery account shows a blance of ?. My 1 ofthis year, 12,100 was paid for a one-year insurance polo d. On November ? of this vear, $1,050 was paid for three months of advertising. e. As of December 33, the balasce of the Uneamed Membersip fees account 14,700. Of this amount, ,800 has been earned Equipment purchased on May : of tis year for $9.400 i espected to have a uselul ie of five vears with a trade-in value of 1.000,Al other equioment has been fully depreciaced. The straigh e ehod is used As of December 31 h As of December 31. the balance of the supplies account i 53,820 Ap nventory of the suplestai with an amout of 1.650 dmned to be

Explanation / Answer

Inventory A/c dr           898                        (21959-21061)
to Inventory suspense A/c 898

Insurance A/c dr 12,100
To Bank A/c       12,100

Deferred Revenue expenditure A/c dr   3,683                  (11050/3)
To Bank                               3,683

Bank A/c dr                 14,700
To unearned income           4,200
TO Membership fees          10,500

Depreciation A/c dr     1,680           (8,400/5)
To Equipment A/c        1,680

accrued Wages a/c dr      690            (230*3)
To wages a/c              690

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