Question

The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0 Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 144,000 Interest Expense 6,840 _______ Totals $1,522,565 $1,522,565 Adjusting Items: 1. A physical inventory shows supplies on hand of $3,000 at year end. 2. The prepaid rent covers December 2016 thru March 2017 rents. 3. December depreciation on equipment is $11,000 per month. 4. At year end Wages of $10,000 were earned but unpaid. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

Answer 1

supplies expense 3255 debit

supplies 3255 credit

--to record supplies consumed--

rent expense 2750 debit

prepaid rent 2750 credit

--to record expired rent--

depreciation expense 11000 debit

acc. Dep. equipment 11000 credit

-to record depreication over the year--

wages expense 10000 debit

wages payable 10000 credit

--to record earned wages from emplyees--

Step-by-step explanation:

a) we subtract dfrom the book value the physical count of suppliesd and assume the difference as expense. (if there is purcahse we add them)

b) we divide the 11,000 rent over the four months to get the value for December (one-month

c) and d) the values are given