Question

Please complete this problem!! ASAP!!

Complete your answers in a Word (or equivalent) document and submit here by no later than February 13th at midnight. All answers are in journal entry format. Problem 1: Present, in general journal form, the adjustments that would be made on December 31, 2019, the end of the fiscal year, for each of the following: The supplies inventory on January 1, 2019 was $7,350. Supplies costing $16,150 were acquired during the year and charged to the supplies inventory. An inventory taken on December 31, 2019 indicated supplies on hand of $8,810. On April 30, 2019, a ten-month note receivable for $30,000 earning interest at 10% was received from a customer. On March 1, 2019, $9,000 was collected as rent from a tenant for one year and the rent revenue account was credited at that time. A two-year insurance policy costing $6,000 was purchased on April 1, 2019 A weekly payroll of $35,600, covering a five-day, Monday through Friday workweek, is paid every Friday. This year, December 314 falls on a Thursday.

Answer 1

Journal

Date	Account title	Debit	Credit
1	Supplies expense	14,690
	Supplies		14,690
2	Interest receivable	2,000
	Interest revenue		2,000
3	Rent revenue	1,500
	Unearned rent revenue		1,500
4	Insurance expense	2,250
	Prepaid insurance		2,250
5	Salaries expense	14,240
	Salaries payable		14,240

i)

Supplies expense = Beginning supplies + Supplies purchased - Ending supplies

= 7,350 + 16,150 - 8,810

= $14,690

ii)

Interest revenue to be recorded on December 31 = Note receivable x Interest rate x Time period

= 30,000 x 10% x 8/12

= $2,000

(iii)

Rent revenue for 12 months = $9,000

Rent revenue for 10 months = 9,000 x 10/12

= $7,500

Unearned rent revenue on December 31 = Rent revenue for 12 months - Rent revenue for 10 months

= 9,000 - 7,500

= $1,500

iv)

Insurance expense for 9 months from April 1 to December 31 = 6,000 x 9/24

= $2,250

v)

5 days salaries expense = $35,600

Salaries expense for 2 days = 35,600 x 2/5

= $14,240

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