Sam Buckley started his own cycle repair shop, Sam's Cycles, on September 1, 2017. Sam wants to prepare monthly financial statements, so adjusting journal entries are required on September 30. Selected transactions for September follow:
Instructions
Prepare adjusting entries for the items above.
Adjusting entries
no | Account and explanation | debit | credit |
1 | Supplies expense | 1100 | |
Supplies | 1100 | ||
(To record supplies used) | |||
2 | Utilities expense | 775 | |
Utilities payable | 775 | ||
(To record accrued utilities) | |||
3 | Insurance expense (2360/12) | 196.67 | |
Prepaid insurance | 196.67 | ||
(To record insurance expense) | |||
4 | Depreciation expense (9600/48) | 200 | |
Accumulated depreciation-equipment | 200 | ||
(To record dep) | |||
5 | Interest expense (15000*4.5%*1/12) | 56.25 | |
Interest payable | 56.25 | ||
(To record interest) | |||
6 | Salaries and wages expense | 3000 | |
Salaries and wages payable | 3000 | ||
(To record accrued salaries) | |||
7 | Account receivable | 950 | |
Service revenue | 950 | ||
(To record service revenue) | |||
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