Presented below is information related to Merry Enterprises at the close of the

Question

Presented below is information related to Merry Enterprises at the close of the year ending 12/31/2015. In the space provided prepare any adjusting entries at 12/31/2015. If no adjusting entry is necessary, indicate this by writing <None needed>

A. Insurance paid November 1 for one year was $8,400 and was debited to Prepaid Insurance when paid.

B. Salaries due and unpaid at 12/31/2015 was $6,200

C. The depreciation on the building for the year was determined to be $20,000

D. On October 1, 2015, the company leased a portion of its building to March Company and received a check for $7,200 for one year's rent paid in advance. When the $7,200 was received, it was recorded as Unearned Rent Revenue.

E. The Supplies account has a $1,250 balance. Aphysical count shows that $500 of supplies are on hand

Explanation / Answer

A. debit prepaid insurance..............$1400

credit suspense account..............................$1400

B. debit salary............$6200

credit accrued/due/unpaid salary..........$6200

C. debit depreciation on building...................$20000

credit building.............................................................$20000

D. debit unearned rent revenue..........................$7200

credit rent in advance..........................................................$7200

E. debit supplies expense....................................$750

credit supplies account....................................................$750

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