PREPARE ADJUSTING ENTRIES... X.) On November 1, 2018, Accounting Creations loane

Question

PREPARE ADJUSTING ENTRIES...

X.) On November 1, 2018, Accounting Creations loaned a key supplier, $25,000. A promissory note was signed and issued. The note is due in full 6-months. The supplier agrees to pay interest on the note at an annual rate of 8%. Principle and interest will be paid at the end of the 6-months. The note was recorded in Notes Receivable and is the only note outstanding.

Y.) Per a physical count of office supplies, $5,149 (enter the last three digits of your student number) of supplies remained at the end of 2018. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $35,000 of office supplies were purchased and immediately expensed.

Z.) On November 1, 2018 Accounting Creations paid ABC Advertising $16,000 for a four month campaign of advertising services. Equal services are provided each month.

Explanation / Answer

Journal Entries

date

explanation

debit

credit

31-Dec

interest receivables

333.33

interest revenue

333.33

31-Dec

supplies expense

(difference in current year ending balance- previous year end balance) previous year balance is not given

supplies

31-Dec

advertising expense

5333.33

prepaid advertising expense

5333.33

Journal Entries

date

explanation

debit

credit

31-Dec

interest receivables

333.33

interest revenue

333.33

31-Dec

supplies expense

(difference in current year ending balance- previous year end balance) previous year balance is not given

supplies

31-Dec

advertising expense

5333.33

prepaid advertising expense

5333.33

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