Question

Cash $ 23,900,

Accounts Receivable13,600,
Allowance for Uncollectible Accounts $ 1,400,
Supplies $2,500,
Notes Receivable (6%, due in 2 years) $20,000
Land $77,000
AccountsPayable $7,200
CommonStock $96,000
Retained Earnings $32,400
Totals $137,000 $ 137,000
b. Supplies at the end of January total $700.
c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
d. Unpaid salaries at the end of January are $33,500.
Record the adjusting entry for each.

Answer 1

Adjusting entries for supplies would debit Supplies Expense and credit Supplies for $1,800. Accrued interest revenue would be recorded with a debit to Interest Receivable and a credit to Interest Revenue for $100. Unpaid salaries would be handled with a debit to Salaries Expense and a credit to Salaries Payable for $33,500.

Step-by-step explanation:

The question provided involves making adjusting journal entries for a business's accounting records. The adjustments relate to supplies, accrued interest revenue, and unpaid salaries. Here is how you would record each of these:

• Supplies Adjustment: The business had supplies initially worth $2,500, and at the end of January, the supplies total $700. The adjusting entry would decrease the supplies account and increase the supplies expense account by the amount used during the month:
• Accrued Interest Revenue: The notes receivable account has a balance of $20,000 with a 6% annual interest rate. Interest for January needs to be accrued. To calculate the monthly interest:
  Interest for one month = ($20,000 × 6%) ÷ 12 = $100
  Then record the interest revenue as follows:
• Unpaid Salaries: At the end of January, there are $33,500 in unpaid salaries. This must be recognized as an expense and a liability for January:

When these adjusting entries are posted, they reflect more accurately the current financial position and performance of the business.