Identify the normal balance (debit or credit) for each of the following accounts.
-
Fees earned (revenues)
-
Office supplies
-
Owner withdrawals
-
Wages expense
-
Account receivable
-
Prepaid rent
-
Wages payable
-
Building
-
Owner Capital
Identify the normal balance (debit or credit) for each of the following accounts.
-
Fees earned (revenues)
-
Office supplies
-
Owner withdrawals
-
Wages expense
-
Account receivable
-
Prepaid rent
-
Wages payable
-
Building
-
Owner Capital
Related questions
Rainmaker Environmental Consultants is just finishing its secondyear of operations. The companyâs unadjusted trial balance atOctober 31, 2011 follows:
Rainmaker Environmental Consultants | ||
Unadjusted Trial Balance | ||
October 31, 2011 | ||
Account | Debit | Credit |
Cash | 28,000 | |
Accounts receivable | 56,000 | |
Interest receivable | 0 | |
Notes receivable | 30,000 | |
Supplies | 4,600 | |
Prepaid insurance | 9,350 | |
Prepaid rent | 21,000 | |
Office furniture | 61,440 | |
Accumulated depreciation, office furniture | 20,480 | |
Accounts payable | 35,000 | |
Wages payable | 0 | |
Unearned consulting fees | 13,160 | |
Jeff Moore, capital | 60,000 | |
Jeff Moore, withdrawals | 16,450 | |
Consulting fees earned | 314,600 | |
Interest revenue | 1,400 | |
Depreciation expense â office furniture | 0 | |
Wages expense | 147,000 | |
Insurance expense | 0 | |
Rent expense | 64,000 | |
Supplies expense | 6,800 | |
Totals | 444,640 | 444,640 |
Rainmaker prepares adjustments each October 31. The followingadditional information is available on October 31, 2011:
a.It was determined that $12,000 ofthe unearned Consulting fees had not yet been earned.
b.It was discovered that $6,000 ofthe balance in consulting fees earned was for services to beperformed in November.
c.The balance in the prepaid rentaccount represented three months of rent beginning September 1,2011.
d.Accrued wages at October 31totaled $6,800.
e.The office furniture waspurchased on March 1, 2010, and has an estimated useful life of twoyears. After two years, it is expected that the furniture will beworthless.
f.Accrued consulting fees atyear-end totaled $4,200.
g.Interest of $200 had accrued onthe note receivable for the month of October.
h.The balance in the prepaidinsurance account represents the remaining balance of a two-yearpolicy purchased on April 1, 2010.
i.A count of the supplies onOctober 31 revealed a balance remaining of $900.
Required
Prepare adjusting journal entries on October 31, 2011 based onthe above.
On May 31, the following data were accumulated to assist theaccountant in preparing the adjusting entries for OceansideRealty:
| a. | Fees accrued but unbilled at May 31are $19,750. |
| b. | The supplies account balance on May31 is $12,300. The supplies on hand at May 31 are $4,150. |
| c. | Wages accrued but not paid at May31 are $2,700. |
| d. | The unearned rent account balanceat May 31 is $9,000, representing the receipt of an advance paymenton May 1 of three monthsâ rent from tenants. |
| e. | Depreciation of office equipment is$3,200. |
| Required: | |
| 1. | Journalize the adjustingentries required at May 31. Refer to the Chart of Accounts forexact wording of account titles. |
| 2. | What is the difference betweenadjusting entries and correcting entries? |
Chart of Accounts
| CHARTOF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oceanside Realty | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
