Simply Sewing Inc. had the folowing account balances on December 31: • Retained Earnings, January 1 $50.000 • Supplies • Unearned Sewing Revenue • Prepaid Rent 8,000 5,000 12,000 Prepare the following adjusting journal entries for the year end December 31. a) A physical count of supplies at December 31 shows the balance on hand is $3.000. bị The company earned $2,000 of the sewing work that was paid for in advance. c) The prepaid rent listed above was paid for by the company on June 1 and represents one year of rent. It has not been adjusted since it was paid on June 1. Prepare the journal entry to adjust the Prepaid Rent account to the correct amount as of December 31. (Write journal entries in proper journal entry format. Do not abbreviate when writing journal entries and make sure you identify which line is the Debit (DR) and which line is a Credit (CR) using one of the following two examples) Example 1: DR Cash 4,000 CR Revenue 4.000 OR Debit Credit 4.000 Example 2: Cash 4,000 Revenue OR HIMLEdr Example 3: Debit Cash 4,000 and Credit Revenue 4,000
Simply Sewing Inc. had the folowing account balances on December 31: • Retained Earnings, January 1 $50.000 • Supplies • Unearned Sewing Revenue • Prepaid Rent 8,000 5,000 12,000 Prepare the following adjusting journal entries for the year end December 31. a) A physical count of supplies at December 31 shows the balance on hand is $3.000. bị The company earned $2,000 of the sewing work that was paid for in advance. c) The prepaid rent listed above was paid for by the company on June 1 and represents one year of rent. It has not been adjusted since it was paid on June 1. Prepare the journal entry to adjust the Prepaid Rent account to the correct amount as of December 31. (Write journal entries in proper journal entry format. Do not abbreviate when writing journal entries and make sure you identify which line is the Debit (DR) and which line is a Credit (CR) using one of the following two examples) Example 1: DR Cash 4,000 CR Revenue 4.000 OR Debit Credit 4.000 Example 2: Cash 4,000 Revenue OR HIMLEdr Example 3: Debit Cash 4,000 and Credit Revenue 4,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
Problem 3.12MCE: Determining an Ending Account Balance Jessies Accounting Services was organized on June 1. The...
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