Question

Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Depreciation for the current year includes Equipment, $3,700. The Accumulated Depreciation - Equipment unadjusted balance as of December 31 is $7,000. Adjustment Type: Depreciation Expense - Equipment Accumulated Depreciation - Equipment

Answer 1

Adjustment Type: [ Accrual Depreciation Expenses - Equipment 4 Unadj. Bal Dec. 31 31 Bal. Accumulated Depreciation - Equipment Unadj. Bal Dec. 31 31 Bal. $ 3,700 3,700 7,000 3,700 10,700 $ Adjustment Type: Deferrals/Prepaid Supplies Expense Unadj. Bal Office Supplies 9,800 Dec. 31 to $ 290 Unadj. Bal Dec. 31 31 Bal. 290 290 $ 31 Bal. a 9,510 Adjustment Type: Accrual Interest Expense Unadj. Bal Dec. 31 31 Bal. Interest Payable Unadj. Bal Dec. 31 31 Bal. 200 200 200 200 $ Credit Date Dec 31 Debit 1,300 $ $ 1,300 Accounts and Explanation Unearned Revenue Service Revenue (To record completed service that were paid earlier) Insurance Expense Prepaid Insurance (To record accrual of insurance expense) Dec 31 3,200 $ 3,200