Flint Hill, Inc has prepared a trial balance of its general ledger as of Decembe
ID: 2506897 • Letter: F
Question
Flint Hill, Inc has prepared a trial balance of its general ledger as of December 31, 2013. Certain accounts in the trial balance do not reflect all activities which have occurred. Required: Prepare journal entries, as required, the following items.
A. The supplies account shows a balance of $540, but a count of supplies reveals only $210 on hand.
B. Flint Hills charges all insurance premiums to expense. The trial balance shows a balance of $420 in insurance expense. A review of insurance polisies reveals that $125 of insurance is unexpired.
C. Salaries of $2,400 per week are paid each Friday. Flint Hills' year end falls on Tuesday.
D. Received a utility bill on January 10, 2014 for December electricity usage of $190.
Explanation / Answer
Date Account titles and explanation Debit Credit A. December 31, 2013 Supplies Expense $ 330 Supplies $ 330 (To record suppliese expense at year end) Working: Supplies Expense = Supplies as per balance - Supplies on hand = $ 540 - $ 210 = $ 330 Date Account titles and explanation Debit Credit B. December 31, 2013 Prepaid Insurance $ 125 Insurance Expense $ 125 (To record insurance unexpired) Date Account titles and explanation Debit Credit C. December 31, 2013 Salaries Expense $ 960 Salaries Payable $ 960 (To reccord salaries outstanding at year end) Working: Salaries outstanding = $ 2,400 x 2/5 = $ 960 Date Account titles and explanation Debit Credit D. December 31, 2013 Utilitiy Expense $ 190 Accounts Payable $ 190 (To record utilities at year end)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.