Answer:
Jaguar
Adjusting Journal Entries:
General Journal
Date Description Debit Credit
a. Depreciation Expense-Equipment $9,900
Accumulated Depreciation-Equipment $9,900
To record depreciation expense for the year.
b. Wages & Salaries Expense $3,900
Wages & Salaries Payable $,3900
To record unpaid salaries.
c. Interest on Notes Expense $1,380
Interest on Notes Payable $1,380
To accrue interest on notes for 4 months to December 31.
d. Insurance Expense $19,500
Prepaid Insurance $19,500
To accrue insurance expense for 10 months
e. Supplies Expense $
Supplies $
To record supplies expense for the year (difference between Supplies balance and Supplies remaining at the end ($4,900).
f. Utilities Expense $2,150
Utilities Payable $2,150
To record utilities expense for the month.
Explanation:
Adjusting journal entries are prepared at the end of an accounting period. They adjust the expense and revenue accounts in line with the accrual concept and the matching principle of generally accepted accounting principles.
The adjusting entries are for unpaid expenses, unreceived earned revenue, prepaid expenses, deferred revenue, and depreciation expenses, and correction of errors in posting transactions to the general ledger.
