Prepare year-end adjusting entries for each of the following situations:
a. The Store Supplies account showed a beginning debit balance of $400 and purchases of $2,800. The ending debit balance was $800.
b. Depreciation on buildings is estimated to be $7,300.
c. A one-year insurance policy was purchased for $2,400. Nine months have passed since the purchase.
d. Accrued interest on notes payable amounted to $200.
e. The company received a $9,600 advance payment during the year on services to be performed. By the end of the year, one-third of the services had been performed.
f. Payroll for the five-day workweek, to be paid on Friday, is $10,000. The last day of the period is a Tuesday.
g. Services totaling $920 had been performed but not yet billed or recorded.

Question

Quizplus · Accepted Answer

The Answer of Prepare year-end adjusting entries for each of the following situations:
a. The Store Supplies account showed a beginning debit balance of $400 and purchases of $2,800. The ending debit balance was $800.
b. Depreciation on buildings is estimated to be $7,300.
c. A one-year insurance policy was purchased for $2,400. Nine months have passed since the purchase.
d. Accrued interest on notes payable amounted to $200.
e. The company received a $9,600 advance payment during the year on services to be performed. By the end of the year, one-third of the services had been performed.
f. Payroll for the five-day workweek, to be paid on Friday, is $10,000. The last day of the period is a Tuesday.
g. Services totaling $920 had been performed but not yet billed or recorded.

Prepare Year-End Adjusting Entries for Each of the Following Situations