Prepare written answers to the given assignments
Problem 1: Prepare adjusting entry for supplies: Gleason Advertising Company's trial balance at December 31 shows Advertising supplies $6700 and Advertising Supplies Expense $0. On December 31, there is $1700 of supplies on hand. Prepare the adjusting entry at December 31, and using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.
Problem 2: Prepare adjusting entry for depreciation. At the end of its first year, the trial balance of Easton Company shows equipment $30,000 and zero balances in Accumulated Depreciation - Equipment and Depreciation Expense. Depreciation for the year is estimated to be $6,000. Prepare the adjusting entry for depreciation at Dec. 31, post adjustments to T Accounts, and indicate the balance sheet presentation of the equipment at Dec. 31.
Problem 3: Prepare adjusting entry for prepaid expense. On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-yr insurance contract. Both companies have fiscal years ending Dec. 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on Dec. 31.
Problem 4: Prepare adjusted entry for unearned revenue. Using the data in BE3-5 above, journalize and post the entry on July 1and the adjusting entry on Dec. 31 for Pizner Insurance Co. Pizner uses the accounts Unearned Insurance Revenue and Insurance Revenue.
Problem 5: Prepare adjusting entries for accruals. The bookkeeper for Wooster Company asks you to prepare the following accrued adjusting entries at December 31.
1) Interest on notes payable of $400 is accrued.
2) Services provided but not recorded total $1250.
3) Salaries earned by employees of $900 have not been recorded.
Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries Expense and Salaries Payable.