Prepare adjusting entries using the following information in the General Journal
ID: 2360406 • Letter: P
Question
Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of repair supplies is $388.
c) The estimated depreciation on repair equipment is $140.
d) The estimated income taxes are $80.
Parkview Landscaping Corporation
Trial Balance
July 31
DR CR
Cash $21,356
Prepaid Insurance $2,200
Landscaping Supplies $380
Landscaping equipment $8,800
Accts. Payable $7,980
Common Stock $24,000
Landscaping Rev. $5,344
Rent Expenses $2,080
Utility Expenses $308
Insurance Expenses $200
Supplies Expenses $400
Dividends paid $1,600
done
37324 37324
Explanation / Answer
A.) Debit Insurance expense 200 Credit prepaid insurance according to the balance, insurance expense monthly is $200, thus B.) Debit Supplies 8 Credit Supplies Expense 8 Supplies remaining is 388, yet balance shows 380, rectify this with a debit C.) Debit depreciation expense 140 Credit accumulated depreciation 140 D.) Debit Income Tax Expense 80 Credit Income Tax Payable 80