Parrish Ch. 4 Pg. 101 4-5 11/25/19
For the following entries please identify if the entry is correct. If not correct the entry and explay WHY it is incorrect. Thank you.
1) To record depreciation on trucks for one year. The trucks cost $30000 and have no salvage value. They are being depreciated strait line over 6 years.
Depreciation Expense $1500
Accumulated Depreciation $1500
2) To record one year's interest on a loan to an officer of the compnay. The loan was $10000 at 7% interest
Interest Revenue $730
Interest Receivable $730
3) The Supplies account started with a balance of $1900. At the end of the period, a count of remaining supplies was indicated we had $563 left.
Supplies Expense $563
4) Employees have earned $1900 since last payday
Wages Expense $1900
Wages Payable $1900
5) The company received a bill from the County Treasurer for $700 property taxes. The taxes are due next month
6) To record sales made on the last day of the year which company which the company has not yet billed
Accounts Receivable $2800
7) To record one month of rent expense. Three months ago, the company paid $8160 for one years rent
Rent Expense $680
Prepaid Rent $680
8) The company received an electric bill for $800 for the current month. The bill is due next month.
Utilities Expense $800
Utilities Payable $800
9) The supplies account had a balance of $2300 at the end of the month. The count at the end of the month showed a balance of $400
Supplies Expense $1900
10) The company performed $1000 of services which the client pay for in advance.
Undearned service fees $1000
Service fee revenue $1000
Journal entry is the act of keeping or making record of any transactions. Transactions are listed in an accounting journal that shows a company’s debit and credit balance. The journal entry can consist of several recordings each of which is either a debit or a credit.
Following are the reason of in...
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