Adjusting Journal Entries Practice Problem

in Chapter 3 (Problem 18 of 20)

Hard

Unadjusted Trial Balance December 31
	Debits	Credits
Cash	7,100
Accounts Receivable	6,200
Supplies	1,200
Accounts Payable		1,500
Notes Payable		6,000
Unearned Revenue		400
Common Stock		2,600
Retained Earnings		1,900
Dividends	600
Revenues		10,200
Salaries Expense	5,100
Rent expense	2,400
	22,600	22,600

Additional Information:

Supplies used during the year totaled $750.
Of the balance in the Unearned Revenue account, 60% had been completed.
Accrued salaries at December 31 were $900
On December 1, the company prepaid $2,400 for 4 months of rent. This transaction was recorded with a debit to Rent Expense
The note is a 6-month, 4% loan obtained from the bank on November 1.

Required:

Prepare all necessary adjusting entries as of December 31. (There are 5 of them.)
Determine Net Income for the year ending December 31.

Journal Entry 1
Supplies Expense			750
	Supplies			750

Journal Entry 2
Unearned Revenue			240
	Revenue			240

Journal Entry 3
Salary Expense			900
	Salary Payable			900

Journal Entry 4
Prepaid Rent			1,800
	Rent Expense			1,800

Journal Entry 5
Interest Expense			40
	Interest Payable			40

Net Income is 3,050

The Rest Of The Practice Problems

	Click Here to View All Chapter 3 Problems at Once	View
1	Closing Journal Accounts	Easy
2	Adjusting Entry Identification	Easy
3	Current Assets	Easy
4	Revenue Journal Entry	Easy
5	Revenue Recognition	Easy
6	Revenue Recognition	Easy
7	Determining Net Income From Transactions	Moderate
8	Revenue Recognition	Moderate
9	Adjusting Entry - Wage Expense	Moderate
10	Closing Process	Moderate
11	Determining Net Income From Journal Entries	Moderate
12	Adjusting Entry - Salaries Payable	Moderate
13	Prepaid Rent	Moderate
14	When You Forget to do Adjusting Entries	Hard
15	The Effect of Transactions	Hard
16	Account Classifications	Hard
17	Revenue and Expense Recognition	Hard
18	Adjusting Journal Entries You are here.	Hard
19	Adjusting Journal Entries	Hard
20	Year End Closing & Account Classification	Hard

1	Current Assets	9:57
2	Non-Current Assets	10:25
3	Current Liabilities	6:24
4	Non-Current Liabilites	2:00
5	The Classified Balance Sheet	4:48
6	Cash vs. Accrual Accounting	7:21
7	Expense Recognition	8:07
8	Accruals and Deferrals	15:07
9	What is an Adjusting Entry?	4:11
10	Adjusting Entry: Supplies	1:54
11	Adjusting Entry: Wages	4:52
12	Adjusting Entry: Unearned Revenue	2:11
13	Adjusting Entry: Interest	2:03
14	Contra-accounts	4:40
15	Depreciation	7:10
16	The Closing Process	10:37