Question

Question 35 (9 points) Saved Conrad Corporation has a December 31st year-end and prepares adjusting entries annually. It has been determined that adjusting entries are required for the following: a. The Prepaid Insurance account included $2,400 for two year fire insurance policy that was purchased and effective September 1, 2018. b. The Prepaid Rent account balance is $900 which includes rent for three months commencing December 1, 2018. c. The Supplies account has a balance of $1,400 and a physical count shows that $500 of supplies is on hand. d. The Bank Loan Payable account has a balance of $30,000 at 8% for 6 months was borrowed on September 1, 2018. e. Accrued salaries amount to $2,800. f. Provide service of $750 to a customer on account on December 20th, no entry has been recorded and the customer has not paid this amount. g. The Unearned Revenue account has a balance of $1,000, of this amount, 75% has been earned. Analyze the transactions above and prepare the adjusting journal entries in the general journal provided below. Note: Once you click in the table below, you can drag the dotted triangle at the bottom right corner of the text editor window to make it bigger. If you accidentally delete the below table, you can add a new one using the rich-text editor, or try to make your answer as clear as possible using paragraphs and spaces.

Answer 1

In the books of Conrad Corporation
Journal Entry
Sl. No.	Description	Debit	Credit
a	Insurance	$          400
	Prepaid insurance		$          400
	(being insurance expense accrued)
b	Rent	$          300
	Prepaid Rent		$          300
	(being rent accrued)
c	Supplies Expense	$          900
	Supplies		$          900
	(being expenses incurred)
d	Interest (30000*8%*4/12)	$          800
	Interest Payable		$          800
	(being interest on loan accounted)
e	Salaries	$      2,800
	Salaries Payable		$      2,800
	(being salaries accrued)
f	Accounts receivable	$          750
	Service revenue		$          750
	(being services provided)
g	Unearned revenue	$          750
	Revenue Earned		$          750
	(being revenue earned)