Question

Prepare the December 31 adjusting entries for the following transactions.

a. Fees accrued but not billed, $6,300.
b. The Supplies account balance on December 31, $4,750.
c. Supplies on hand, $960
d. Wages accrued but not paid, $2,700
e. Depreciation of office equipment, $1,650
f. Rent expired during year, $10,800.

Answer 1

Answer and Explanation:

The journal entries are shown below:

a. Account receivable Dr $6,300

To Fees Revenue $6,300

(Being fees accrued is recorded)

b Supplies Expense $3,790 ($4,750 - $960)

To Supplies $3,790

(being supplies expense is recorded)

d. Wages Expense $2,700

To Wages Payable $2,700

(being wages expense is recorded)

e. Depreciation Expense $1,650

To Accumulated Depreciation $1,650

(being depreciation expense is recorded)

f. Rent Expense $10,800

To Prepaid Rent $10,800

(being rent expense is recorded)