Propare the wollowing adjusting entries in proper from with explanations for Aug
ID: 2567655 • Letter: P
Question
Propare the wollowing adjusting entries in proper from with explanations for August 2015.If there is no entry to be made write NO ENTRY.
1, Depreciation on office equipment is $350,000 for the month of August. Record the depreciation
2, There were $1,500,000 of office supplies at the end of July. Purchases of office supplies during August were $750,000. At the end of August, there were $640,000 of supplies left. Record what was used.
3, prepaid rent had a balance of $8,000 at the end of July. Twenty-five percent of this was used in August. Record the lent that expired/ was used in August.
4, Fees of $70,000 were received advance on August 1st. At the end of August, 60% were still unearned. Record what has been earned in August.
5, Payroll for the 5 day work week, which is paid every Friday is $15,000. August 31st, (last day of the month) is a Thursday. Record the balance of August that has not been paid.
6, The company ordered new office furniture on August 15th from Office Depot that will cost $2,530. It has not been delivered.
Explanation / Answer
Adjustment Account TTitles and Explanations Debit Credit August 31 $ $ 1. Depreciation Expense 350,000 Accumulated Depreciation : Office Equipment 350,000 To record depreciation on office equipment for the month 2. Office Supplies Expense 260,000 Office Supplies 260,000 To record consumption of office supplies during the month. 3. Rent Expense 2,000 Prepaid Rent 2,000 To record prepaid rent expired during the month 4. Unearned Revenue 28,000 Revenue 28,000 To recognize unearned revenue earned during the month 5. Wages Expense 12,000 Wages Payable 12,000 To record unpaid wages for the month 6. No entry
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