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Accounting Entries and Adjustments Summary

The document contains journal entries for various transactions throughout the year: 1) Prepaid insurance of $54,000 for 2 years with monthly adjustments for expense. 2) Cash received in advance from customers of $120,000 with no adjusting entry. 3) Purchase of office supplies for $6,500 with adjusting entry to expense $3,300 at year-end. 4) Purchase of office equipment for $100,000 with monthly depreciation expense entries. 5) $150,000 promissory note issued with interest expense of $2,500 at year-end.

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Jenny Bernardino
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62 views8 pages

Accounting Entries and Adjustments Summary

The document contains journal entries for various transactions throughout the year: 1) Prepaid insurance of $54,000 for 2 years with monthly adjustments for expense. 2) Cash received in advance from customers of $120,000 with no adjusting entry. 3) Purchase of office supplies for $6,500 with adjusting entry to expense $3,300 at year-end. 4) Purchase of office equipment for $100,000 with monthly depreciation expense entries. 5) $150,000 promissory note issued with interest expense of $2,500 at year-end.

Uploaded by

Jenny Bernardino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

DATE

a. March 1, 2013 Prepaid insurance 54,000.00


Cash
To record payment of insurance for 2 years

March. 31 Insurance expense 2,250.00


Prepaid insurance
To record insurance expense

April.30 Insurance expense 25,000.00


Prepaid insurance
To record insurance expense
Dec. 31 Prepaid insurance 4,750.00
Insurance expense
To record adjustment on insurance
32,000.00
22,500.00
9,500.00
B. Dec. 1, 2013 Cash 120,000.00
Unearned revenue
To record cash advance from customers

No adjusting entry on Dec 31

C. Office Supplies 6,500.00


Cash
To record purchased of office supplies

Dec. 31, 2013 Office supplies expense 3,300.00


Office supplies
To adjust office supplies
(6,500-3,200=3,300)

D. Aug. 1, 2013 Office Equipment 100,000.00


Cash
To record purchased of office equipment

Dec. 31, 2013 Depreciation expense-Office equipment 4,166.67


Accumulated Depreciation-Office equipment
To record depreciation
((100,000/10)*5/12)

E. Nov.1, 2013 Cash 150,000.00


Notes payable
To record promissory note to bank

Dec. 31, 2013 Interest expense 2,500.00


Accrued interest
To record interest
(150,000*0.1*90/360)*(2/12)

Principal 150,000.00

Interest for 1 year 15,000.00


Interest for 90 days 3,750.00 3
Interest for a month 1,250.00 1
2 months 2,500.00
PREPAID INSURANCE
March 1, 2013 54,000.00
1st year 2nd year
54,000.00 March 31, 2013 2,250.00 expense March 31, 2014 2,250.00
April 30, 2013 2,250.00 expense April 30, 2014 2,250.00
May 31, 2013 2,250.00 expense May 31, 2014 2,250.00
June 30, 2013 2,250.00 expense June 30, 2014 2,250.00
July 31, 2013 2,250.00 expense July 31, 2014 2,250.00
2,250.00 August 31, 2013 2,250.00 expense August 31, 2014 2,250.00
September 30, 2013 2,250.00 expense September 30, 2014 2,250.00
October 31, 2013 2,250.00 expense October 31, 2014 2,250.00
November 30, 2013 2,250.00 expense November 30, 2014 2,250.00
25,000.00 December 31, 2013 2,250.00 expense December 31, 2014 2,250.00
January 31, 2014 2,250.00 January 31, 2015 2,250.00
February 28, 2014 2,250.00 February 28, 2015 2,250.00
4,750.00 March 31, 2014 2,250.00 March 31, 2015 2,250.00

32,000.00 Recorded
22,500.00 Should be
9,500.00
120,000.00

6,500.00

3,300.00

100,000.00

4,166.67

150,000.00

2,500.00
40000

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