File Edit View History Bookmarks Window Help tice Connect Pr

File Edit View History Bookmarks Window Help tice: Connect Practice Assignment - Assessment Activity - Week4- ACC/291 - eCampus ce a. On December 31, 2019, the Notes Payable account at Northwood Manufacturing Company had a batance of $16,000. This balance represented a three -month, 7.5 percent note Issued on November 1 b. On January 2, 2019, Hitech Computer Consultants purchased nash drives, paper, and other supplies for $5,230 in c. On September t, 2019, North Dakota Manufacturing paid a premium of $14,640 in cash for a one-year Insurance d. On May 1 2019, Headcase Beauty Salon signed a one year advertising contract with a local radio station and issued cash. On December 31, 2019, an inventory or supplies showed that ltems costing $1590 were on hand. The Supplies account has a balance of $5.230 policy On December 31, 2019, an examination of the insurance records showed that coverage for a period of tour months had expired. a check for $10,800 to pay the total amount owed. On December 31, 2019, the Prepaid Advertising account has a balance of $10,800. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31 2019, worksheet assuming no previous acjusting entries have been made during the year no pei View transaction list Journal entry worksheet Record the adjustment for interest. Note: Enter debits before credits. Debit Credit Dec 31 2019 Record entry View general journal

Solution

Date Account Debit credit 31 dec Interest expense 200 Interest payable 200 [being interest accrued for 2 months ][16000*.075*2/12] 31 dec supplies expense 3640 supplies 3640 [Being supplies used 5230-1590] 31dec Insurance expense 4880 Prepaid Insurance 4880 [Insurance expired for four months = 14640*4/12] 31dec Advertising expense 7200 Prepaid advertising 7200 [advertising expired for 8 months 10800*8/12]