Accounting question: How would I go about adjusting the following entries (which is debit, which is credit)?
Accounting question: How would I go about adjusting the following entries (which is debit, which is credit)?
I need to know what to debit and what to credit (1 dr and 1 cr for each) for the following adjustment data:
1. Accrued accounting servic erevenue at July 31st, $900
2. Prepaid rent expired during the month. The unadjusted balance of prepaid rent relates to the period July through october
3. Supplies on hand at July 31st, $400
4. Depreciation on furniture for the month. The estimated useful life of the furniture is 4 years.
5. Accrued salary expense at July 31st for 1 day only. The 5-day weekly payroll is $1,000
Thanks in advance
Answers:
Chosen Answer
tma: 1. if you were given a beginning balance for acctg service revenue, the difference b/w the beginning and ending balances would be your adjustment Dr. Accrued Revenue xxx Cr. Revenue xxx 2. you didnt give the amount of prepaid rent at the beginning of the year. take the unadjusted balance and divide by 4 months. Dr. Rent expense xxx Cr. Prepaid rent xxx 3. you didnt give the amount of supplies on hand at the beginning of the year. the difference b/w the beginning and ending balances would be your adjustment. Dr. Supplies expense xxx Cr. Prepaid supplies xxx 4. you didnt give us the amount of the asset. divide asset by 48 months Dr. Depreciation expense xxx Cr. Accumulated depreciation xxx 5. Dr. Salaries expense 200 ($1,000/5) Cr. Accrued salaries 200
2006-12-11 15:58:42
tma: 1. if you were given a beginning balance for acctg service revenue, the difference b/w the beginning and ending balances would be your adjustment Dr. Accrued Revenue xxx Cr. Revenue xxx 2. you didnt give the amount of prepaid rent at the beginning of the year. take the unadjusted balance and divide by 4 months. Dr. Rent expense xxx Cr. Prepaid rent xxx 3. you didnt give the amount of supplies on hand at the beginning of the year. the difference b/w the beginning and ending balances would be your adjustment. Dr. Supplies expense xxx Cr. Prepaid supplies xxx 4. you didnt give us the amount of the asset. divide asset by 48 months Dr. Depreciation expense xxx Cr. Accumulated depreciation xxx 5. Dr. Salaries expense 200 ($1,000/5) Cr. Accrued salaries 200
2006-12-11 15:58:42