Question

Nike Exxon Royal Dow (NERD) Corporation sells pasta to grocery chains under several private label brand names. NERD Corp.'s reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 31,200 Accounts receivable 40,600 Supplies 1,800 Inventory 60,600 Notes receivable 20,600 Interent receivable 0 Prepaid rent 2,000 Prepaid insurance 6,300 Office equipment 82,400 Accumulated depreciation 30,900 Accounts payable 31,600 Salaries payable 0 Notes payable 50,600 Interest payable 0 Deferred sales revenue 2,300 Common stock 63,900 Retained earnings 30,000 Dividendo 4,600 Sales revenue 149,000 Interest revenue Cont of goods sold 73,000 Salaries expense 19,200 Rent expense 11,300 Depreciation expense 0 Interest expense 0 Supplies expense 1,400 Insurance expense . Advertising expense 3,300 Totals 358,300 358,300 Information necessary to prepare the year end adjusting entries appears below.

Answer 1

	Journal Entry Worksheet
Transaction	General journal	Debit	Credit
1	Depreciation A/c …. Dr	$      10,300
	To Office Eqipment A/c		$ 10,300
Transaction	General journal	Debit	Credit
2	Salaries Expense A/c…Dr	$        1,500
	To Salaries Payable A/c		$   1,500
Transaction	General journal	Debit	Credit
3	interest Expense A/c…Dr	$        1,518		=50600*12%*3/12
	To Interest Payable A/c		$   1,518
Transaction	General journal	Debit	Credit
4	Interest Receivable A/c …Dr	$        1,545		=20600*9%*10/12
	To interest revenue A/c		$   1,545
Transaction	General journal	Debit	Credit
5	Insurance Expense A/c…Dr	$        2,363		=6300*9/24
	To Prepaid InsuranceA/c		$   2,363
Transaction	General journal	Debit	Credit
6	Supplies Expenses A/c…Dr	$        1,000		=1800-800
	To Supplies A/c		$   1,000
Transaction	General journal	Debit	Credit
7	No journal Entry Required
Transaction	General journal	Debit	Credit
8	Rent Expense A/c…Dr	$        1,000		=2000-1000
	To Prepaid Rent A/c		$   1,000