Prepare the following adjusting entries in proper form with explanations for Aug
ID: 2566819 • Letter: P
Question
Prepare the following adjusting entries in proper form with explanations for August 2017. If there is no entry to be made write NO ENTRY a. Depreciation on office equipment is $350.00 for the month of August. Record the depreciation. 14. b. There were $1,500.00 of office supplies at the end of July. Purchases of office supplies during August were $750.00. At the end of August, there were $640.00 of supplies left. Record what was used. c. Prepaid rent had a balance of $8,000 at the end of July. Twenty-five percent of this was used in August. Record the rent that expired/ was used in August. Fees of $70,000 were received in advance on August 1st. uneamed. Record what has been earned in August d. At the end of August, 6096 were still e. Payroll for the five-day work week, which is paid every Friday is $15,000. August 31st, last day of the month) is a Thursday. Record the the balance of August that has not been paid f. The company ordered new office furniture on August 15th from Office Depot that will cost $2,530. It has not been delivered.Explanation / Answer
14.The following are the required journal entries:
Date Description Debit Credit 31st August Depreciation expense a/c $350.00 ..........To Accumulated depreciation - Office equipment a/c $350.00 (being depreciation expense on office equipment now recorded) August 31 Office supplies expense a/c $1,610 .............To Office supplies a/c $1,610 (Being office supples used calculated as opening balance + purchases - closing balance =>1500 + 750 - 640 =>$1,610) August 31 Rent expense a/c $2,000 ...........To Prepaid rent a/c $2,000 (being rent expense for august determined as $8000*25%=>$2,000) d Unearned revenue a/c $28,000 .............To service Revenue a/c $28,000 (service revenue earned = 70,000 * 40%=.28,000), since 60% is stll unearned only 40% is recorded this month. e Salaries and wages a/c $12,000 ...............To Salaries and wages outstanding a/c $12,000 (Being 4 days expired of a five day work week =>(15,000*4/5)=>$12,000) F No entry(since only an order has been placed, there was no delivery or payment for the asset)