Question

At the end of May, the following adjustment data were assembled.

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.

Required:
Journalize the adjusting entries.

Answer 1

Answer and Explanation:

The adjusting entries are as follows:

a.  Insurance expense $275  

            To Prepaid insurance $275

(To record the insurance expense)

b.  Supplies expense $785 ($1,500 - $715)

            To Supplies $785

(To record the supplies expense)

We assume the balance of supplies before adjustment is $1,500

c. Depreciation - office equipment $330

          To Accumulated depreciation $330

( To record the depreciation expense)

d. Salary Dr $325

        To Accrued salary $325

(To record  the accrued salary)

e.  Rent expense $1,600  

           To Prepaid rent $1,600

(To record the rent expense )

f. Unearned fees $790  

          To Fees revenue $790

(To record the unearned fees is recorded)  

We assume the balance of unearned fees before adjustment is $4,000

Therefore, $790 is arrive from

= $4,000 - $3,210

= $790