The ledger of Buerhle, Inc. on March 31, 2010, includes the following selected a

Question

The ledger of Buerhle, Inc. on March 31, 2010, includes the following selected accounts before adjusting entries.
Debit Credit
Prepaid Insurance 2,400
Office Supplies 2,500
Office Equipment 30,000
Unearned Revenue 10,000


An analysis of the accounts shows the following:
o 1. Insurance expires at the rate of $300 per month.
o 2. Supplies on hand total $900.
o 3. The office equipment depreciates $500 per month.
o 4. 2/5 of the unearned revenue was earned in March.

Prepare the adjusting entries for the month of March

Explanation / Answer

The adjusting entries may be as follows: 1) a) P & L a/c - 300 DR Insurance Expense a/c - 300 b) Insurance Expense a/c - 300 DR Prepaid Insurance a/c - 300 2) *Office supplies is your stock? Debtors/Customer's a/c - 1600 DR Office supplies a/c - 1600 3) a) P & L a/c - 500 DR Depreciation Expense a/c - 500 b) Depreciation Expense a/c - 500 DR Accumulated depreciation a/c - 500 4) Cash/Bank a/c - 2000 DR Unearned revenue a/c - 2000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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