Post the adjusting journal entry to the general ledger on the \"12-31-14 T-Accou
ID: 2576628 • Letter: P
Question
Post the adjusting journal entry to the general ledger on the "12-31-14 T-Accounts" tab. You may have to add T-Accounts for new accounts. PLEASE NOTE THAT THE "BB" (BEGINNING BALANCES) FOR THE T-ACCOUNTS REPRESENT THE UNADJUSTED BALANCES AS OF 12/31/14.
A, 123114 Adjusting Journal Entries JE Debits Credits Prepaid Insurance Insurance Expense 8,200 Prepaid Insurance 8,200 (to record insurance expense for 1month) Depreciation Building Equipment 400 2,000 Accumulated Depreciation Building Accumulated Depreciation - Equipment 400 2,000 [to record depreciation expense for 1month) Unearned revenue Unearned Revenue 12,000 Rent Revenue 12,000 [to record rent revenue for 1month 36003) Interest acrued adjusting entry nterest Expense 1.175 Interest accrued 1.175 (to record interst expense for 1month) Cost of Goods Sold 332,700 nventory To close purchases account) cost of goods sold to record cost of goods sold) Impairement Loss [to record impairement of assets) Purchases 332,700 252,700 inventory 252,700 1,000 Accumlated Impairement losses 1,000Explanation / Answer
Please note: The journal entries have been posted to ledger accounts as given. The correctness of the same cannot be verified due to absence of any other information. However, the depreciation entry which prima facie seems incorrect as the accounts to be debited should not be Building and Equipment but Depreciation Expense has been correctly posted. Do check on the correctness of other entries such as purchases account, etc. prior to submission.
Prepaid Insurance Insurance Expense bb 24000 8200 bb 73800 8200 Depreciation Expense Accumulated Depreciation - Building bb 24000 4000 bb 2400 400 Accumulated Depreciation - Equipment Unearned Rent Revenue 20000 bb 12000 36000 bb 2000 Rent Revenue Interest Expense 12000 1175 Interest accrued Cost of Goods Sold 1175 252700 Inventory Purchases bb - 252700 bb 350000 332700 332700 Impairment Loss Accumulated Impairment Losses 1000 1000