Question

Comprehensive Problem 1 Part 4 and Part 6: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2 and 3 before completing parts 4 and 6. Please note that part 5 is optional. Part 4: At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is $275. b. Supplies on hand on May 31 are $715. c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $325. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $3,210. Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2. a. Insurance expired during May is $275.

Answer 1

Answer:

Journal Entry

a) Debit Insurance Expense $275 Credit Prepaid Insurance $275

b) Debit Supplies expense $amount Credit Supplies Account $amount

c) Debit Depreciation $330 Credit Accumulated Depreciation on office equipment $330

d) Debit Salaries expense $325 Credit Salaries payable $325

e) Debit Rent Expense $1,600  Credit Prepaid Rent $1,600

f) Debit Bank $3,210 Credit Unearned fees $3,210

Explanation:

The Question is incomplete but I will show how the typical entry of these adjustment are carried out.

b) The supplies on hand is an Asset account and have already been recorded when they were purchased. The adjustment is there to show that on the purchased Supplies before month end, actual supplies expense ( used supplies) is the difference between purchased supplies and the on hand supplies (unused supplies) at the end of the month.