CHAPTER 3 QUIZ
Prepare adjusting journal entries (in proper format on proper accounting paper) for the following
independent situations:
1) A business pays weekly salaries of $25,000 on Friday for a five-day work week ending
on that day. 10/31 falls on Wednesday.
2) The balance in the Prepaid Insurance account before adjustment is $16,500 (assume
normal balance). As of 10/31 the amount of insurance that has expired is $6,500.
3) The balance in the Unearned Revenue account before adjustment is $4,800 (assume
normal balance). As of 10/31, one quarter of the revenue has been earned.
4) The balance in the Supplies account before adjustment is $6,700 (assume normal
balance). On 10/31, a count reveals that only $1,300 of supplies remain on hand.
5) The company purchased a delivery van on 10/1. The van is being depreciated at a rate of
$350 per month. Prepare the adjusting entry as of 10/31.
CHAPTER 3 QUIZ
Prepare adjusting journal entries (in proper format on proper accounting paper) for the following
independent situations:
1) A business pays weekly salaries of $25,000 on Friday for a five-day work week ending
on that day. 10/31 falls on Wednesday.
2) The balance in the Prepaid Insurance account before adjustment is $16,500 (assume
normal balance). As of 10/31 the amount of insurance that has expired is $6,500.
3) The balance in the Unearned Revenue account before adjustment is $4,800 (assume
normal balance). As of 10/31, one quarter of the revenue has been earned.
4) The balance in the Supplies account before adjustment is $6,700 (assume normal
balance). On 10/31, a count reveals that only $1,300 of supplies remain on hand.
5) The company purchased a delivery van on 10/1. The van is being depreciated at a rate of
$350 per month. Prepare the adjusting entry as of 10/31.
Related questions
Death Valley Resort opened for business on August 1, 2014. Itstrial balance before adjustment on August 31 is presentedbelow.
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Adjusting entries information:
Insurance expires for $500 a month
A count of supplies on August 31 shows $900 of supplies left onhand on August 31.
Depreciation expense for the month is $550 on Buildings and $300on Equipment.
Unearned rent of $2,000 was earned
Salaries of $600 were unpaid at August 31
Rental revenue of $1,600 were due from tenants at August 31, butnot yet recorded
Instructions
(a) | Journalize the adjusting entries for the month of August 31(6 points) |
(b) | Prepare an adjusted trial balance on August 31. (add newaccounts to the Trial Balance as necessary) (6points)
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(d) | Prepare an Income Statement (6 points),Retained Earnings Statement (4 points) aClassified Balance Sheet as of August 31.(8points)
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