Preparing the adjusting entry


Question 1. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).

The company borrowed $20,000 on a 9% note on September 30, 2009.

Question 2. Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).

Question 3: The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, Jan 3. What is the adjusting entry to record accrued salaries at the end of December?

Question 4: Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).

The supplies inventory on January 1, 2009 was $9,350. Supplies costing $18,150 were acquired during the year and charged to the supplies asset account. A count on December 31, 2009 indicated the supplies on hand of $6,810. Be sure and indicate what accounts you are debiting and crediting in your answer.

Question 5: Prepare the adjusting entry that would be made on December 31, 2009, the end of the year for the following: (Be sure and indicate what accounts you are debiting and crediting in your answer).

Amber Company purchased an annual insurance policy on June 1, 2009 for $12,000 and debited insurance expense account.

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Accounting Basics: Preparing the adjusting entry
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