Question

2 Record the appropriate adjusting journal entries on 1/31/2020 based on the following: a. An inventory of supplies reveals that only $200 of supplies remain as of 1/31/2020. (You'll need to add a new Supplies account - Account Type: Expenses, Detail Type: Supplies & Materials, Name: Supplies) b. $1,500 of prepaid expenses expired (representing prepaid insurance) in the month of January T c. A bill for $350 was received and recorded in the next month from Fixit, Inc. for repairs performed in the current month. Create a new liability account like you did earlier in the chapter.

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ a $ Supplies Expense Supplies (To record adjusting Entry for consumption of Supplies) Amount = Beginning Balance of Supplies + Purchased During Period - $200 b $ 1,500.00 $ 1,500.00 Insurance Expense Prepaid Insurance (To record adjusting entry for expired prepaid insurance) с S 350.00 Repairs Expense Repairs Payable (To record adjusting entry for repairs expenses) $ 350.00

d $ 210.00 S 210.00 Service Revenue Unearned Service Revenue (To record adjusting entry for unearned service revenue) Accounts Receivable Service Revenue (To record Services Provided on account and not yet billed) e $ 1,800.00 $ 1,800.00 f $ 1,200.00 S 850.00 Depreciation Expense Accumulated Depreciation - Buildings Accumulated Depreciation - Machinery & Equipment (To record adjusting entry Depreciation Expense) $ 350.00