Question

2. Record the following ADJUSTING Entries as of Dec 31st 2018 in General Journal Form: a. Office Supplies had a debit balance of $4,250 at the beginning of the year (Jan 1, 2018). During the year, additional supplies were purchased of $5,500. A count of supplies on hand at the end of the year (Dec 31, 2018) totaled $2,650 (Asset Value). Record the supplies used up during 2018. (Hint: $4,250 + $5,500 - $2,650 = Supplies Used Up and needs to be recorded as Supplies Expense) b. Tara Company purchased an Auto on Jan 1, 2018 at a cost of $22,000. During the year, the Auto depreciated $4,000. c. Tara Company prepaid $18,000 for 6 months of her RENT on November 1, 2018. Record the adjustment for expired rent expense at Dec 31, 2018 (Hint: 2 months x $3,000 =Rent Expense needs to be recorded from Prepaid Rent). d. Tara Corp. has unpaid electricity costs of $650 at Dec 31, 2018. e. Tara Company collected revenue in advance of $12,000. At year end Tara determines that 80% was earned during 2018. (HINT: $12,000 x 80% is EARNED and no longer UNEARNED) f. Tara Company earned $4,350 from a customer on Dec 15, 2018 and has not yet sent out a bill or recorded the transaction yet. g. The Tara Company has WEEKLY payroll of $20,000. The year (12/31/18) ended on a Thursday and the employees are paid weekly every Friday. Record an adjustment for the payroll earned and unpaid in 2018.( HINT: $20,000 / 5 Days = $4,000 per day x 4 Days = $16,000 Unpaid Salary Expense NOT yet recorded)

Answer 1

Adjusting Entries
TR	Accounting titles & Explanations				Debit	Credit
a)	office supplies expense				7100
	office supplies.					7,100
	(4250+5500-2650)
b)	Depreciation expense				4,000
	Accumulated depreciation					4,000
c)	rent expense				6,000
	prepaid rent					6,000
d)	utiliity expense				650
	utility payable/accounts payable					650
e)	unearned revenue				9,600
	revenue earned					9,600
f)	Accounts receivable				4,350
	revenue earned					4,350
g)	Salary expense				16,000
	Salaries payable					16,000