Recording Adjusting Entries Flashcards
On September 1st, Zimmerman collected six months rent sales of $9,600. Debited cash and credited unearned rent expense.
Debit Unearned Rent Expense (-L) $6,400
Credit Rent Revenue (+R,+SE) $6,400
Deferred Revenue
Borrowed $18,000 from the bank with 12% note for one year. The principal and interest are payable on maturity date.
Debit Interest Expense (+E,-SE) $540
Credit Interest Payable (+L) $540
Accrued Revenue
Depreciation of $3,500 on service truck
Debit Depreciation Expense (+E,-SE) $3,500
Credit Accumulated Depreciation (-A) $3,500
Deferred Expense
Cash of $3000 was collected in November of current year for services to be divided evenly throughout the year. Unearned Service Revenue was credited when cash was received.
Debit Unearned Revenue (-L) $500
Credit Service Revenue (+R,+SE) $500
Deferred Revenue
On November 1st, paid one year premium for insurance of $8,400. Cash was credited and Prepaid Insurance was debited
Debit Insurance Expense(+E,-SE) $1,400
Credit Prepaid Insurance (-A) $1,400
Deferred Expense
Earned service revenue of $4000 for job completed during December 29th. Collection will be made in January next year.
Debit Account Receivable (+A) $4000
Credit Service Revenue (+R,+SE) $4000
Deferred Revenue
On December 31st, wages earned by employees totaled $14,000. They will be paid in January
Debit Wage Expense (+E,-SE) $14,000
Credit Wage Payable (+L) $14,000
Accrued Expenses
On December 31st company estimated it owed $500 for the property taxes. The tax is paid when the bill is received in January next year
Debit Property Tax Expense (+E,-SE) $500
Credit Property Tax Payable (+L) $500
Accrued Expenses
On January 1st, the company purchased a new van for $38,000. Depreciation is $3,800 for the year.
Debit Depreciation Expense (+E,-SE) $3,800
Credit Accumulated Depreciation (-A) $3,800
During the year, supplies amounted to $1,000 paid with cash. At the end of last year, there were $400 left on hand. The inventory of supplies counted on hand at the end of the year was $180.
Debit Supplies Expense (+E,-SE) $1220 Credit Supplies (-A) $1220
On December 31, Lanie’s Garage completed repairs on our companies truck costing $2,600. This amount is not recorded yet and it will be paid next January
Debit Repair Expense (+E,-SE) $2,600
Credit Account Payable (+L) $2,600
On December 31st, property taxes owned during the year was $1,900. the taxes have not been reported and will be paid next year.
Debit Property Taxes Expense (+E,-SE) $1,900
Credit Property Taxes Payable(+L) $1,900
On December 31st, the company completed a service for $4,000 payable by the customer
Debit Accounts Receivable (+A) $4,000
Credit Service Revenue (+R,+SE) $4,000
On July 1st, 3 year insurance was paid for $900 and debited to Prepaid Insurance.
Debit Insurance Expense (+e,-se) $150
Credit Prepaid Insurance (-a) $150
On October 1st, the company borrowed $25,000 from the local bank on a one year 12% note payable. The principle plus interest is due in 12 months.
Debit Interest Expense (+e,-se) $750
Credit Interest Payable (+l) $750.
