Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.
Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes. The taxes are due next month.
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 7PB: Using the following information, A. Make the December 31 adjusting journal entry for depreciation....
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Transcribed Image Text:Adjusting entries.
4-5.
For each of the following adjusting entries, identify whether the entry is correct.
If it is not correct, provide the correct entry in the journal on the next page and specny
why the entry given below is wrong.
Depreciation Expense
a.
1,500
Accumulated Depreciation
1,500
To record depreciation on trucks for one year. The trucks cost $30,000 and have
no salvage value. They are being depreciated straight line over six years.
Interest Revenue
b.
730
Interest Receivable
730
To record one year's interest on a loan to an officer of the company. The loan
was for $10,000 at 7% interest.
Supplies Expense
Supplies
C.
563
563
The Supplies account started with a balance of $1,900. At the end of the period, a
count of remaining supplies indicated we had $563 left.
1,900
Wages Expense
Wages Payable
d.
1,900
Employees have earned $1,900 since last payday.
700
Taxes Payable
e.
700
Taxes Expense
The company received a bill from the County Treasurer for $700 for property
taxes. The taxes are due next month.
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