Adjusting Journal Entries Practice Problem - Acct 2331, The University of Houston

in Chapter 3 (Problem 22 of 24)

Hard

Unadjusted Trial Balance December 31
	Debits	Credits
Cash	7,100
Accounts Receivable	6,200
Supplies	1,200
Accounts Payable		1,500
Notes Payable		6,000
Unearned Revenue		400
Common Stock		2,600
Retained Earnings		1,900
Dividends	600
Revenues		10,200
Salaries Expense	5,100
Rent expense	2,400
	22,600	22,600

Additional Information:

Supplies used during the year totaled $750.
Of the balance in the Unearned Revenue account, 60% had been completed.
Accrued salaries at December 31 were $900
On December 1, the company prepaid $2,400 for 4 months of rent. This transaction was recorded with a debit to Rent Expense
The note is a 6-month, 4% loan obtained from the bank on November 1.

Required:

Prepare all necessary adjusting entries as of December 31. (There are 5 of them.)
Determine Net Income for the year ending December 31.

Journal Entry 1
Supplies Expense			750
	Supplies			750

Journal Entry 2
Unearned Revenue			240
	Revenue			240

Journal Entry 3
Salary Expense			900
	Salary Payable			900

Journal Entry 4
Prepaid Rent			1,800
	Rent Expense			1,800

Journal Entry 5
Interest Expense			40
	Interest Payable			40

Net Income is 3,050

The Rest Of The Practice Problems

	Click Here to View All Chapter 3 Problems at Once	View
1	Effect on the Current Ratio	Easy
2	Closing Journal Accounts	Easy
3	Revenue Journal Entry	Easy
4	Retained Earnings	Easy
5	Revenue Recognition	Easy
6	Current Assets	Easy
7	Adjusting Entry Identification	Easy
8	Revenue Recognition	Easy
9	Solving for Missing Amounts	Moderate
10	Closing Process	Moderate
11	Determining Net Income From Journal Entries	Moderate
12	Determining Net Income From Transactions	Moderate
13	Adjusting Entry - Salaries Payable	Moderate
14	Prepaid Rent	Moderate
15	Adjusting Entry - Wage Expense	Moderate
16	Revenue Recognition	Moderate
17	The Effect of Transactions	Hard
18	When You Forget to do Adjusting Entries	Hard
19	Account Classifications	Hard
20	Revenue and Expense Recognition	Hard
21	Calculating Operating Income	Hard
22	Adjusting Journal Entries You are here.	Hard
23	Adjusting Journal Entries	Hard
24	Year End Closing & Account Classification	Hard

1	Cash vs. Accrual Accounting	7:21
2	Expense Recognition	8:07
3	Accruals and Deferrals	15:07
4	What is an Adjusting Entry?	4:11
5	Adjusting Entry: Supplies	1:54
6	Adjusting Entry: Wages	4:52
7	Adjusting Entry: Unearned Revenue	2:11
8	Adjusting Entry: Interest	2:03
9	Contra-accounts	4:40
10	Depreciation	7:10
11	Current Assets	9:57
12	Non-Current Assets	10:25
13	Current Liabilities	6:24
14	Non-Current Liabilites	2:00
15	The Classified Balance Sheet	4:48
16	Contributed Capital	5:10
17	Retained Earnings vs Shareholder's Equity	6:41
18	The Multistep Income Statement	12:44
19	The Closing Process	10:37
20	Ratios: Working Capital	2:29
21	Ratios: Current Ratio	4:00