Examples of Journalizing and the Posting of Adjustments

Dakota Company must make three adjusng entries on December 31, 2007.

a. Supplies used, $2,500; (supplies totaling $4,000 were purchased on December 1, 2007, and debited to the supplies account).

b. Expird insurance, $1,800 on December 1, 2007; the fir paid $10,800 for six months' insurance coveage in advance and debited Prepaid Insurance fr this amount.

c. Depreciation expense for equipment $1,200.

Make the journal entries for these adjustments and post the entries to the general ledger accounts. Use page 3 of the general journal for the adjusting entries. Use the following accous and numbers.

Supplies 121

Prepaid Insurance 131

Accum. Depr.---Equip. 142

Depreciation Exp.---Equip. 517

Insurance Expense 521

Supplies Expense 523

Solution Summary

This formatted MS Excel spreadsheet contains examples of journalizing entries and the posting of subsequent adjustments.