Question

How to write the general journal entry for the following

Earned but unpaid salaries at year end amounted to $9,750

$8,350 of unearned service revenue was earned during the year.

Additional supplies used during the year amounted to $1,600.

Additional depreciation of $3,170 on the furniture and fixtures was not recorded.

Additional interest revenue of $850 was earned but not received.

Prepaid rent at year end was $3,700.

Total interest expense for the year was $1,750.

Inventory on December 31 and found $95,350 goods on hand. Sarah uses the perpetual inventory system. HBO declared a cash dividend of $10,000 on December 31. The dividend will be paid on April 15, 2020.

Answer 1

Date	General Journal	Debit	Credit
	Salaries expenses	$     9,750
	Salaries payable		$     9,750
	(To record salaries earned but unpaid)
	Unearned service revenue	$     8,350
	Service revenue		$     8,350
	(To record unearned service revenue earned)
	Supplies expenses	$     1,600
	Supplies		$     1,600
	(To record supplies used during the year)
	Depreciation expenses	$     3,170
	Accumulated depreciation - Furniture and fixtures		$     3,170
	(To record depreciation expenses)
	Interest receivable	$        850
	Interest revenue		$        850
	(To record interest revenue but earned)
	Rent expenses			Amount will be difference between unadjusted prepaid rent and 3,700
	Prepaid rent
	(To record rent expenses)
	Interest expenses	$     1,750
	Interest payable		$     1,750
	(To record interest expenses incurred)
	Dividends	$   10,000
	Dividend payable		$   10,000
	(To declare dividends)

Regarding inventory entry, we have to know the unadjusted balance in inventory account. if it is less than 95,350, entry will debit inventory account and credit cost of goods sold account and amount will be difference. if inventory value is more than 95,350, Cost of goods sold will debit and inventory will credit for difference amount

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