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Practice Problem Adj Entries 1

The document shows accounting journal entries for various expenses and revenues over different periods of time. It includes entries for insurance, interest, depreciation, rent, supplies, unearned revenue, salaries, and interest expenses that are calculated using prorated amounts based on time or percentages. For example, rent expense is calculated based on prorating monthly payments over months and insurance expense is calculated as a percentage of prepaid insurance used in the period.

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22 views7 pages

Practice Problem Adj Entries 1

The document shows accounting journal entries for various expenses and revenues over different periods of time. It includes entries for insurance, interest, depreciation, rent, supplies, unearned revenue, salaries, and interest expenses that are calculated using prorated amounts based on time or percentages. For example, rent expense is calculated based on prorating monthly payments over months and insurance expense is calculated as a percentage of prepaid insurance used in the period.

Uploaded by

EYYO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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a Insurance Expense 8,000

Prepaid Insurance

Expired= 24,000 x 4/12 = 8,000

b Interest Expense 1,750


Interest Payable/Accrued Interest Expense

100,000 x 7% x 3/12 1,750

c Depreciation Expense - Transportation Equipmen 50,000


Accumulated Depreciation - Transportation Equipment

Depreciation = (160,000 - 10,000) / 3 years 50,000

d Unearned Service Income 13,500


Service Income

18,000 x 9/12 = 13,500

e Supplies Expense 5,650


Supplies

f Interest Receivable/Accrued Interest Income 2,400


Interest Income

90,000 x 4% x 8/12 2,400

g Rent Expense 26,000


Prepaid Rent

78,000 x 4/12
Prepaid Insurance Insurance Expense
24,000 8,000 8,000
8,000
16,000

1,750

50,000

13,500

Supplies
6,400 5,650 expense
5,650
750

2,400

26,000
Prepaid Insurance Insurance Expense
24,000 16,000
16,000
40,000

Prepaid Insurance 16000


Insurance Expense 16000
a Rent Expense 83,100
Prepaid Rent

Expired portion:
Nov payment - 156,000 x 7/24 45,500
Feb payment - 56,400 x 4/6 37,600
83,100

b Office Supplies Expense 176,100


Office Supplies

c Unearned Magazine Revenues 410,000


Magazine Revenues

d Depreciation Expense 16,425


Accumulated Depreciation

131,400 / 4 years = 32,850 x 6/12 = 16,425

e Salaries Expense 15,050


Salaries Payable

Accrued Salaries for 7 days:


Executives (P1,000 x 7 days) 7,000
Managers (P750 x 7 days) 5,250
Staff (P400 x 7 days) 2,800
15,050

f Interest Expense 60,000


Interest Payable

P1,000,000 x 24% x 3/12 60,000


83,100

Office Supplies
42,600 176,100 expense
176,100 165,200

end 31,700

Unearned Magazine Revenues


410,000 315,000 6/1/2013
earned 410,000 708,000 (P15 x 47,200)

613,000 end

16,425

15,050

60,000

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