Question

Prepare journal entries for these adjustments. Two-thirds (or $133) of one month's insurance coverage has expired. At the end of the month, $600 of office supplies are still available. This month's depreciation on the computer equipment is $500. Employees earned $420 of unpaid and unrecorded salaries as of month-end. The company earned $1,750 of commissions that are not yet billed at month-end.

Answer 1

The requested journal entries can be prepared as follows. Insurance: Debit Insurance Expense, Credit Prepaid Insurance. Office Supplies: Debit Office Supplies Expense, Credit Office Supplies. Depreciation: Debit Depreciation Expense, Credit Accumulated Depreciation. Salaries: Debit Salaries Expense, Credit Salaries Payable. Commissions: Debit Commissions Expense, Credit Commissions Payable.

Step-by-step explanation:

The requested journal entries can be prepared as follows:

Insurance Adjustment

Debit: Insurance Expense (Two-thirds of $200 = $133)

Credit: Prepaid Insurance (Two-thirds of $200 = $133)

Office Supplies Adjustment

Debit: Office Supplies Expense ($600)

Credit: Office Supplies ($600)

Depreciation Adjustment

Debit: Depreciation Expense (Computer Equipment) ($500)

Credit: Accumulated Depreciation (Computer Equipment) ($500)

Salaries Adjustment

Debit: Salaries Expense ($420)

Credit: Salaries Payable ($420)

Commissions Adjustment

Debit: Commissions Expense (Commission Earned but not billed: $1,750)

Credit: Commissions Payable ($1,750)