Adjusting Entries Labelling

Question 1

A loan payable in the amount of 240,000 with interest of 8%. Last payment was on Dec 1 (Adjusting Entry for Dec 31).

Answer 1

Interest Expense $1,600
Interest Payable $1, 600

Question 2

On Friday (Jan 2) a company pays it’s employees (weekly) in the amount of $19,200 (Adjusting Entry for Dec 31).

Answer 2

Wages Expense $11,520
Wages Payable $11,520

Question 3

On Dec 29 a company negotiated and signed a contract to provide services at an annual rate of $3,600, services start Jan 3 (Adjusting Entry for Dec 31).

Answer 3

No Entry

Question 4

Supplies account had a starting balance of $1,615 with purchases of $3,766 over the year. End of year balance is $1,186 (Adjusting Entry for Dec 31).

Answer 4

Supplies Expense $4,195
Supplies $4,195

Question 5

Jan 1 insurance for 1 year was purchased at $1,530, Jul 1 insurance for 1 year was purchased at $2,900, and Nov 1 insurance for 3 years was purchased for $3,366 (Adjusting Entry for Dec 31).

Answer 5

Insurance Expense $3,167
Prepaid Insurance $3,167

Question 6

Dec 1 a company completed negotiations with a client and accepted $21,000 for one year services paid in advance. The $21,000 was credited to Unearned Service Revenues (Adjusting Entry for Dec 31).

Answer 6

Unearned Service Revenues $1,750
Service Revenues $1,750

Question 7

A truck purchased on Jul 2 for $60,000 with an estimated useful life of 8 years (Adjusting Entry for Dec 31).

Answer 7

Depreciation Expense $3,750
Accumulated Depreciation $3,750