Step 6: On September 30, the following adjustments must be made: 1. record insur
ID: 2459062 • Letter: S
Question
Step 6:
On September 30, the following adjustments must be made:
1. record insurance used for the year
2. actual baking supplies on hand as of September 30 is $1100
3. misc. supplies on hand as of September is $50
I have the following entries:
I have the following entries:
Unadjusted trial balance
Account
Debit
Credit
Cash
47,896.75
Baking Supplies
20,500.00
Merchandise Inventory
175.65
Prepaid Rent
1,500.00
Prepaid Insurance
1,200.00
Baking Equipment
5,000.00
Misc. Supplies
600.00
Accounts Receivable
10,300.00
Notes Payable
10,000.00
Accounts Payable
7,000.00
Wages Payable
480.00
Common Stock
20,000.00
Dividends
3,000.00
Bakery Sales
60,000.00
Merchandise Sales
221.00
Baking Supplies Expense
Rent Expense
4,500.00
Insurance Expense
Misc. Expense
250.00
Business License Expense
375.00
Advertising Expense
200.00
Wages Expense
1,956.00
Telephone Expense
90.00
COGS
157.60
Depreciation Expense
Accumulated Depreciation
Misc Supplies Expense*
Interest Expense*
Interest Payable*
97,701.00
97,701.00
Explanation / Answer
Journal Entries:
1) Depreciation Expense A/c ----------- Dr.
To Accumulated Depreciation --- Cr.
(Being depreciation expense booked and transferred to Accumulated Depreciation A/c)
2) Mislaneous Supllies Expense A/c ------ Dr.
To Cash -------- Cr.
(Being Misllaneous Supplies Expenses booked)
3) Interest expense A/c ------------------- Dr.
To Interest Payable A/c ---------Cr.
( Being the interest expense has been booked and made payable towards liability)
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