When the accounts of Ayayai Inc. are examined, the adjusting data listed below a

Question

When the accounts of Ayayai Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period.

Prepare the following in general journal form. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(a) The adjusting entry for each item.

No.

Account Titles and Explanation

Debit

Credit

(b) The reversing entry for each item where appropriate.

No.

Account Titles and Explanation

Debit

Credit

1. The prepaid insurance account shows a debit of $4,800, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2. On November 1, Rent Revenue was credited for $1,869, representing revenue from a subrental for a 3-month period beginning on that date. 3. Purchase of advertising materials for $845 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $295 are on hand. 4. Interest of $721 has accrued on notes payable.

Explanation / Answer

Please give a like if you find the answer helpful. Thanks

PART B REVERSING ENTRIES

PART A - ADJUSTING ENTRIES

S.No. Accounts title and Explanation Debit ($) Credit ($) 1. No Entry 0 2. Rent Receivable 623 Rent Revenue 623 (To reverse the expired rent entry) 3. Advertising Materials 295   Advertising Materials Expense 295 (To record advertising materials on hand) 4. No Entry 0

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.