194k views
0 votes
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.

User JoeRod
by
8.3k points

1 Answer

6 votes

Final answer:

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.

User Donn
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.