Question

P 3-1 The following unrelated accounts are extracted from the trial balance of Meekins Limited at December 31, its fiscal year-end: Account a. Prepaid rent b. Wages payable c. Income taxes payable d. Unearned commissions revenue e. Other unearned revenue f. Advertising expense 8. Depreciation expense - equipment h. Supplies expense i. Truck operating expense Balance Unadjusted Adjusted $ 300 $ 600 500 700 1,000 2,000 3,000 25,000 20,000 5,000 3,500 500 850 625 4,000 4,500 -0- Required: For each of the above accounts, prepare the most likely adjusting entry, including plausible descriptions. General ledger account numbers are not necessary.

Answer 1

Meekins Limited Adjusting Enteries Debit in $ Credit in $ Trans. Particulars Prepaid Rent a/c Dr. 300 а. To Rent Expense 300 (Rent prepaid adjusted) Wages Expense a/c To Wages Payable b. Dr. 200 200 (Wages accrued) Income Tax Expense a/c Dr. 1000 C. To Income Tax Payable 1000 (Income Tax accrued) Commission Revenue a/c Dr d. 1000 To Unearned Commission Revenue 1000 (Unearned revenue adjusted) assumed cash is not involved Other Unearned Revenue a/c Dr. 5000 е. To Other Revenue 5000 |(Revenue earned) Prepaid Advertising a/c f. 1500 Dr. To Advertising Expense 1500 |(Advertising expense prepaid) Depreciation Expense - equipment a/c Dr To Accum. Depre Equipment (To record depreciation) 500 g. 500 h. Supplies a/c Dr. 225 To Supplies Expense 225 (Correction) Truck Operating Expense a/c To Accounts Payable i. Dr. 500 500 (Expense accrued)