Prepare adjusting entries for the above transactions. Refer to the Chart of Acco
ID: 2581465 • Letter: P
Question
Prepare adjusting entries for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.* The journal should have 10 rows.
Chart of accounts.
CHART OF ACCOUNTS.
General Ledger
C(a) The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies. (b) The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded. (c) The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday. (d) The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned. (e) At the end of the month $5,700 of services had been performed but not yet billed.Explanation / Answer
a Supplies Expense 637 =245+735-343 Supplies 637 b Interest Expense 170 Interest Payable 170 c Wages and Salary Expense 3270 =(5500/2)+(650/5*4) Wages and Salary Payable 3270 d Unearned Fees 27600 =46000*60% Fees Earned 27600 e Accounts Receivable 5700 Fees Earned 5700