Prepare the adjusting journal entries for the following transactions. (If no ent
ID: 2423227 • Letter: P
Question
Prepare the adjusting journal entries for the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Supplies for office use were purchased during the year for $840, of which $270 remained on hand (unused) at year-end.
Interest of $420 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
At year-end, salaries and wages payable of $5,300 had not been recorded or paid.
At year-end, one-half of a $3,700 advertising project had been completed for a client, but nothing had been billed or collected.
Redeemed a gift card for $770 of services.
Prepare the adjusting journal entries for the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Explanation / Answer
1 Supply expense A/c Dr. $570
To Supply A/c $570
( being supplies consumed in year $840-$270)
2.Interest Receivable on notes A/c Dr. $420
To Interest income A/c $420
3. Salary and Wages A/c Dr. $5,300
To Salary and wages payable A/c $5,300
4. Account Receivable A/c Dr. $1,850
To Service Revenue $1,850
(Being earned revenue 1/2 of $3,700)
5 Deferred Revenue from Gift Cards A/c Dr. $770
To Services Rendered A/c Dr. $770
(Assuming client has earlier sold gift card)