Question

Prepare adjusting entries at the end of the year on December 31, 2011, based on the following data.

1. Depreciation on office equipment for the year is $1,300.
2. The balance in Supplies before adjustment is $1,900. A physical count reveals $300 of supplies on hand on December 31, 2011.

3. A two-year insurance policy costing $1,800 was purchased on Sept. 30, 2011. Assume that the purchase was properly recorded on Sept. 30 by debiting Prepaid Insurance and crediting Cash; what is the adjusting entry at Dec. 31?
4.Unearned Service Revenue has a balance of $4,000 before adjustment. Records show that $1,500 of that amount has been earned by December 31, 2011.

5. Salaries owed to employees on December 31, 2011, amount to $2,000.

Answer 1