Question

Supplies for office use were purchased during the year for $580, of which $140 remained on hand (unused) at year-end. Interest of $290 on a note receivable was earned at year-end, although collection of the interest is not due until the following year. At year-end, salaries and wages payable of $4,000 had not been recorded or paid. At year-end, one-half of a $2,400 advertising project had been completed for a client, but nothing had been billed or collected. Redeemed a gift card for $640 of services.

Answer 1

Answer:

Adjusting entries  are given below

Explanation:

solution

                                          Adjusting entries

S.no  Account and explanation                              Debit                 Credit

1.  Supplies expense                                               $440  

        Supplies (580-140)                                                                  $440

2.  Interest receivable                                             $290  

        Interest revenue                                                                      $290

3. Salaries and wages expense                             $4,000  

       Salaries and wages payable                                                  $4,000

4. Advertising expense $\frac{2400}{2}$                                   $1200

       Advertising payable                                                                 $1200

5. Unearned revenue                                               $640  

       Service revenue                                                                             $640