Question Completion:
Journalize the adjusting entries:
Answer:
Yazici Advertising
Adjusting Journal Entries:
Date Account Titles Debit Credit
October 31:
1. Supplies Expense $1,500
Supplies $1,500
To record the supplies expense for the year ended October 31.
2. Insurance Expense $50
Prepaid Insurance $50
To record the insurance expense for the month of October.
Explanation:
a) Data and Analysis:
October 31:
1. Supplies Expense $1,500 Supplies $1,500 ($2,500 - $1,000)
2. Insurance Expense $50 Prepaid Insurance $50 ($600 * 1/12)
3. From the scenario, the year-end is October 31.
Your detailed expenses cost of sales and if the business made a profit or loss.
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