Question

SUBJEC STRUC E. Lee Technology Corporation's trial balance on December 31, 2018 is as follows Lee Technology Corporation Trial Balance December 31, 2018 35.572 59,680 2.443 2.400 14.300 Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Accumulated Depreciation Office Equipment Accounts Payable Notes Payable Uneamed Service Revenue E. Lee, Capital E Lee Withdrawals Service Revenue Salaries Expense Utilities Expense Rent Expense 3,200 2.540 1.000 5.650 88.705 55,000 89.000 58.000 3.600 13.200 204.195 204.195 The following information is also available: a) Ending inventory of office supplies. $538 b) Prepaid rent expired, $1200 c) Depreciation of office equipment for the period, 5800 d) Interest accrued on the note payable, $750 e) Salaries accrued at the end of the period, $800 1) Service revenue still unearned at the end of the period, $3,675 g) Service revenue earned but not billed. $1,800 REQUIRED Determine the adjusting entries

Answer 1

Solution: Adjusting Entries in the books of Lee Technology Corporation:

Event	Account Titles and Explanation	Debit	Credit
a	Supplies Expenses(2443-538)	$           1,905
	Office Supplies		$          1,905
	(To record supplies expense)
b	Rent Expenses	$           1,200
	Prepaid Rent		$          1,200
	(To record rent expense)
c	Depreciation Expense	$               800
	Accumulated Depreciation- Office Equipment		$              800
	(To record depreciation expense)
d	Interest Expense	$               750
	Interest Payable		$              750
	(To record interest payable recorded)
e	Salary Expense	$               800
	Accrued Salary Payable		$              800
	(To record salary payable)
f	Unearned Revenue (5650-3675)	$           1,975
	Service Revenue		$          1,975
	(To record revenue earned)
g	Accounts Receivables	$           1,800
	Service Revenue		$          1,800
	(To record revenue earned on account)