Financial Accounting Study Guide: Transactions, Adjusting

School: American River College - Course: ACCT ACCT 103 - Subject: Accounting

NoDateGeneral JournalDebit Credit 131-DecSalaries and Wages Expense6,000 Salaries and Wages Payable6,000 231-DecInterest Receivable144 Interest Revenue144 331-DecInterest Expense900 Interest Payable900 431-DecInsurance Expense1,600 Prepaid Insurance1,600 531-DecUnearned Subscription Revenue3,425 Subscription Revenue3,425 631-DecSupplies Expense13,335 Supplies 13,335

AEnding Balance$ 2,100 from Trial Balance Add: Supplies expense$ 2,380 adjusting entry at end of the month $ 4,480 Less: Purchases$ 3,750 January Beginning balance$ 730 BInsurance Expense$ 1,650 Total Months12 Total Insurance Paid$ 19,800 Prepaid insurance is for balance= $14,850/1,650= 9 months Insurance remaining is for 9 months = january is equal to 10 months 2 months in 2020 is covered Insurance was taken 2 months prior to january 2021 Insurance was purchased previous year in Novemebr 2020 CEnding Balance, January 31$ 1,310 From Trial Balance Add: Cash paid for salaries$ 7,080 Sub-total$ 8,390 Less: Salaries and wages expenses$ 7,630 Beginning balance, Dec 31, 2020$ 760 DService revenue in January$ 19,880 From Trial Balance Less: Services performed in January$ 14,445 Balance - Unearned Revenue$ 5,435 Ending balance, January 31, 2021$ 3,350 added to ending balance Beginning Balance, December 31, 2020$ 8,785