Question

a. During the month, the Supplies (asset) account was debited $3,600 for supplies purchased. The cost of supplies used during the month was $2,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month 

b. An insurance premium of $960 was paid for the coming year. Prepaid Insurance was debited. 

c. Wages of $6,400 were paid for the current month. 

d. Interest revenue of $500 was received for the current month. 

e. Accrued $1,400 of commissions payable to sales staff for the current month. 

f. Accrued $260 of interest expense at the end of the month. 

g. Received $4,200 on accounts receivable accrued at the end of the prior month. 

h. Purchased $1,200 of merchandise inventory from a supplier on account 

i. Paid $320 of interest expense for the month. 

j. Accrued $1,600 of wages at the end of the current month. 

k. Paid $1,000 of accounts payable.

Answer 1

Journal entries
Date	Accounts titles and explanation	Debit	Credit
a	Supplies expense	$       2,800
	Supplies		$     2,800
	(To record supply used during the period.)
b	Prepaid insurance	$           960
	Cash		$         960
	(To record payment made in advance for prepaid.)
c	Wages expense	$       6,400
	Cash		$     6,400
	(To record wages expense paid.)
d	Cash	$           500
	Interest revenue		$         500
	(To record cash received for interest)
e	Sales commissions expenses	$       1,400
	Sales commissions payable		$     1,400
	(To record accrued sales commissions)
f	Interest expense	$           260
	Interest payable		$         260
	(To record accrued interest expense.)
g	Cash	$       4,200
	Account receivable		$     4,200
	(To record cash collected from account receivable.)
h	Merchandise Inventory	$       1,200
	Account payable		$     1,200
	(To record purchase of inventory on account.)
i	Interest expense	$           320
	Cash		$         320
	(To record interest expense paid.)
j	Wages expense	$       1,600
	Wages payable		$     1,600
	(To record wages expense this paid in future.)
k	Account payable	$       1,000
	Cash		$     1,000
	(To record payment made to account payable.)