Question

Read the description of following adjustments that are required at the end of the accounting period for Benton Tutoring. Determine the account and amount to be debited and the account and amount to be credited. Prepaid insurance for one year on January 1, 20X1, in the amount of $26,880. Record the adjustment on January 31, 20X1.

Purchased supplies for $1,100 on January 1, 20X1. The inventory of supplies was $200 on January 31, 20X1. Record the adjustment for the amount of the supplies that were used during the month of January 20X1.

Depreciation is computed using the straight-line method. An automobile purchased on January 1, 20X1, for $24,960 has an estimated useful life of 8 years with no salvage value. Record the adjustment on January 31, 20X1.Signed a 24-month contract for $4,200 of prepaid advertising on January 1, 20X1. Record the adjustment for the amount of the advertising contract that expired during the month of January 20X1.

You may omit explanations


Problem 1

Date	Account / explanation	PR	Debit	Credit

Answer 1

Journal Entry- Benton Tutoring
Date	Account Tittle	Debit	Credit
31-Jan	Insurance Expense	$2,240.00
	Prepaid Inurance (26880/12)		$2,240.00
31-Jan	Supplies Expense	$900.00
	Supplies (1100-200)		$900.00
31-Jan	Depreciation Expense (24960/8)/12	$260.00
	Accumulateed Depreciation-Automobile		$260.00
31-Jan	Advertising Expense ( 4200/24)	$175.00
	Prepaid Advertising		$175.00