Flint Hills, Inc. has prepared a year-end 2016 trial balance. Certain accounts i
ID: 2542002 • Letter: F
Question
Flint Hills, Inc. has prepared a year-end 2016 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred.
The Supplies account shows a balance of $700, but a count of supplies reveals only $290 on hand.
Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $500 in Insurance expense. A review of insurance policies reveals that $165 of insurance is unexpired.
Flint Hills employees work Monday through Friday, and salaries of $3,200 per week are paid each Friday. Flint Hills' year-end falls on Tuesday.
On December 31, 2016, Flint Hills received a utility bill for December electricity usage of $270 that will be paid in early January.
Prepare adjusting journal entries, as needed, for the following items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Flint Hills, Inc. has prepared a year-end 2016 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred.
Explanation / Answer
Answer:
Event
Description
Debit $
Credit $
(A)
Supply expanses
410
Supply (700-290)
410
(to record the supply expanses)
(B)
prepaid insurance
165
Insurance Expanses
165
(to record the pre paid insurance)
C)
salary Expanses (32000/5)*2
1280
salary Payable
1280
(to record the salary expanses)
D)
Utility Expanses
270
Utility Payable
270
(to record the Utility expanses)
Event
Description
Debit $
Credit $
(A)
Supply expanses
410
Supply (700-290)
410
(to record the supply expanses)
(B)
prepaid insurance
165
Insurance Expanses
165
(to record the pre paid insurance)
C)
salary Expanses (32000/5)*2
1280
salary Payable
1280
(to record the salary expanses)
D)
Utility Expanses
270
Utility Payable
270
(to record the Utility expanses)
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