Question

Prepare adjusting journal entries, as needed, for the following items.a. The Supplies account shows a balance of $550, but a count of supplies reveals only $250 on hand at year-end.b. The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted trial balance at year-end shows a balance of $520 in Prepaid Insurance. A review of insurance policies reveals that $170 of insurance is unexpired.c. Employees work Monday through Friday, and salaries of $2,900 per week are paid each Friday. The company's year-end falls on Tuesday.d. At year-end, the company received a utility bill for December's electricity usage of $290 that will be paid in early January.

Answer 1

Answer: Please see answer in explanatory column

Step-by-step explanation:

Journal entry to record the supplies expense

Account Debit Credit

Supplies expense $300

Supplies $300

calculation

Balance - supplies on hand at year end = $550-$250= $300

Journal entry to record the payment of insurance premiums.

Account Debit Credit

Insurance expense $170

Prepaid Insurance $170

Journal entry to record the payment of employee expense

Account Debit Credit

Salaries expense $1,160

Salaries payable $1,160

Calculation= work is being done Monday thru Friday , company year end falls on Tuesday

$2,900 x 2/5 =$1,160

Journal entry to record the expense of utility bill for December's usage paid in January

Account Debit Credit

Electricity expense $290

Electricity Expense payable $290