Question

The ledger of Windsor, Inc. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared.

		Debit		Credit
Investment in Note Receivable		$24,000
Supplies		23,500
Prepaid Rent		3,200
Buildings		280,000
Accumulated Depreciation—Buildings				$140,000
Unearned Service Revenue				11,900

An analysis of the company’s accounts shows the following.

1.		The investment in the notes receivable earns interest at a rate of 12% per year.
2.		Supplies on hand at the end of the month totaled $15,200.
3.		The balance in Prepaid Rent represents 4 months of rent costs.
4.		Employees were owed $2,700 related to unpaid salaries and wages.
5.		Depreciation on buildings is $6,720 per year.
6.		During the month, the company satisfied obligations worth $4,800 related to the Unearned Services Revenue.
7.		Unpaid maintenance and repairs costs were $2,300.

Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

1)	Interest receivble (24000*12%/12)	240
	Interest income		240
2)	Supplies expense (23500-15200)	8300
	Supplies		8300
3)	Rent expense (3200/4)	800
	Prepaid rent		800
4)	Salaries and wages expense	2700
	Salaries and wages payable		2700
5)	Depreciation expense-Buildings (6720/12)	560
	Accumualated depreciation-Buildings		560
6)	Unearned service revenue	4800
	Service revenue		4800
7)	Repairs and maintenane expense	2300
	Accounts payable		2300