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    Adjustment and closing process Basic entries:

    Selected ledger counts used by Alvarez Truck Rental, Inc are listed long with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, you are to indicate the proper accounts to be debited and credited.

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    © BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf
    https://brainmass.com/business/accounting/account-adjustments-process-basic-entries-17414

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    Hi there,

    Please see the attached Word document.
    Adjustment and closing process Basic entries
    Selected ledger counts used by Alvarez Truck Rental, Inc are listed long with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, you are to indicate the proper accounts to be debited and credited.

    1 Cash 33 Notes Payable 41 Truck Rental Revenue
    2 Accounts Receivable 23 Dividends Payable 51 Advertising Expense
    3 Office Supplies 24 Income Taxes Payable 52 office Supplies EXense4 Unexpired insurance 25 Unearned Revenue 53 Rent Expense
    5 Trucks 31 Capital Stock 54 Insurance Expense
    6 Accumulated Depreciation: Trucks 32 Retained Earnings 55 Depreciation Expense: Trucks
    21 Accounts Payable 33 Dividends 56 Income Taxes Expense
    35 Income Summary

    Transactions Account(s) Account(s)
    Example Paid rent on the building of the current period 53 1
    a. Trucks are purchased by making a 30 % cash don payment and
    Issuing a not payable for the balance of the purchase price 5, 1, 33
    b. Fee is received in advance, for rental of truck for a future period 1 25
    c. Purchased a large quantity of office supplies of credit 3A+ 22A+
    d. Bought a three-year insurance policy and paid in full 4A+ 1A-
    e. Declared a dividend to e paid in 60 days. 33 23
    f. Depreciation on trucks is recorded 55 6
    g. Adjusting entry is made to record liability to Daily News for
    Adverting done this period: payment is due next month 51 21
    h. Adjusting entry is made to record truck rentals earned but not yet
    received or recorded
    1 25
    I. Some portion of the truck rentals previously received in advance have now been eared 25 41
    j. Made an adjusting entry for office supplies used during this period 52E+ 3A-
    K. Made and adjusting entry for office supplies used during this period 54E+ 3A-
    l. Made and adjusting entry to accrue income taxes expense at the end of a profitable period 56 24
    m. Closed the revenue account at the end of the period 35 32
    n. Closed the Income Summary account at the end of a Profitable period 32SE- 35SE+
    O Closed the Dividends account at the end of the periods 33 32

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf>
    https://brainmass.com/business/accounting/account-adjustments-process-basic-entries-17414

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