Could anyone please help me understand this problem. I took the test and feel as

Question

Could anyone please help me understand this problem. I took the test and feel as though I pretty much messed this portion up. I would just like to see it done the correct way in order to cross referenced it with mine and see where my calculations went wrong.
Thank you!

Listed below are the unadjusted general ledger account balances of Franklin Co. at December 31, 2010 (amounts are presented at their normal balance):

Cash 10,400
Accounts Receivable 2,500
Office Supplies 950
Prepaid Insurance 2,400
Building 100,000
Accumulated Depreciation

Explanation / Answer

Here are the adjusting journal entries a) DR Insurance expense 1,200 CR Prepaid insurance 1,200 b) DR Unearned rent revenue 1,600 CR Rent revenue 1,600 c) DR Supplies expense 550 (950-400) CR Supplies 550 d) Truck depreciation is 36,000/5 *5/12= 3,000 DR Depreciation expense 3,000 CR Accumulated depreciation-truck 3,000 e) DR Wage expense 2,000 CR Wages payable 2,000 Hope this helps. If you want me to do more, post as a separate question and I will respond.

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