1 Eachof the following independent events requires a yearend

1 Eachof the following independent events requires a year-end adjusting entry 3 a Paid $3,300 cash in adance on October 1for a one-year lease on office space 4 b.Purchased $3,500 of supplies on account on June 15. At yarend, $130 of supplies rema 5 c. Received a $8,300 cash advance on September 1for a contract to provide services for o 6 d. Paid $3,900 cash in advance on May 1for a one-year insurance policy. 8 Required: 9 Record each event and the related adjusting entry in general journal format. Use the drop 10 down menu to select the correct account. The first event is recorded as an example. Assume 11 a December 31 closing date. (Round your answers to the nearest dollar amount.) Date Account Title DebitCredit 14 a. Oct.1 Prepaid rent Cash Dec. 31 Rent expense Prepaidrent 20 Date Account Title 21 b.June 1 DebitCredit 24 Dec. 31 27 Date Account Title 28 c. Sept. 1 DebitCredit Dec. 31 Date Account Title DebitCredit 35 d. May 1 37 Dec. 31 40

Solution

Adjusted Journal Entries December 31st Date Particular Amount (DR) Amount(Cr) a) 1-Oct Prepaid Rent $            9,300.00      To Cash $                        9,300.00 (Being amount of Rent Paid for 12 months ) 31st Dec Rent =(9300/12)*3 $            2,325.00      To Prepaid Rent $                        2,325.00 (Being amount of 3 months rent transfer from prepaid to rent account) b) 15-Jun Supplies $            3,500.00    To Accounts Payable $                        3,500.00 (Being amount of purchase of office supplies on account) 31st Dec Supplies Expenses=($3500-$130) $            3,370.00    To Supplies $                        3,370.00 (Being amount of Supplies Expenses) c ) 1-Sep Cash $            8,300.00     To Unearnd Service Revenue $                        8,300.00 (Being amount received for a contract to provide survice ) d) 1st May Prepaid Insurance $            3,900.00 To Cash $                        3,900.00 (Being amount paid for one year insurance policy) 31st Dec Insurance A/c=($3900*8/12) $            2,600.00     To Prepaid Insurance $                        2,600.00 (Being amount transfer from prepaid innsurance to insurance account)