Question

KIDZFIRST CHILD CARE - Year 1 Q2 At the end of Year1, KIDZFIRST made the following adjusting journal entries. Record each adjusting entry in proper journal entry format below using debits and credits. KIDZFIRST Child Care GENERAL JOURNAL - Year 1 Date Accounts AJE #1 Record rent expense for the year. (Refer to TJE #2.) Dec 31 Debit Credit AJE #2 Record depreciation expense for the year. (Refer to TJE #3.) AJE #3 Record interest expense for the year. (Refer to TJE #3.) AJE #4. At the end of the first year, KIDZFIRST had $6,000 of supplies still on hand that had not been used. (Refer to TJE #4.)

Answer 1

Solution.

KIDZFIRST CHILD CARE
General Journal- Year 1
Date	Accounts	Debit	Credit
Dec. 31	Rent Expense	$        20,000
	Prepaid Rent		$        20,000
	To record adjusting entry for prepaid rent
	Rent for 1 year = 40,000 * 1/2 = 20,000
Dec. 31	Depreciation Expense	$          2,750
	Accumulated Depreciation-Furniture		$          2,750
	To record Acc. Dep. for the year
	Acc. Dep = $15,000/5 *11/12 = $2750
Dec. 31	Interest Expense	$          1,100
	Interest Payable		$          1,100
	Int. expense = 10,000 *12% * 11/12=1100
Dec. 31	Supplies Expense	$        34,000
	Supplies		$        34,000
	To recod supplies expnse
	Supplies Exp =$40,000 - $6,000 = $34000