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1. Office supplies have a balance of $2,400. An inventory at 12/31 shows $1,700 of supplies on hand.
2. There are two insurance accounts in the trial balance, prepaid insurance-$9,200 and Insurance Expense $2,800. Unexpired insurance at the statement date is $3,000.
3. All rent receipts ($25,000) were credited to rent income. At the end of the year, $5,000 of rentals are unearned.
4. The allowance for uncollectibles has a credit balance of $6,000. An aging schedule shows estimated uncollectibles of $14,000.
5. The balance in A/P is $122,400. Included in this amount is $10,400 of advance deposits made by Brian Co. on future purchases.
6. The ledger shows interest receivable of $3,200 at the beginning of the year. All interest collections have been credited to interest revenue. At December 31 of the current year, accrued interest receivable totals $3,800.
7. A/R has a balance of $118,400. This balance is net of customers with credit balances of $15,000.
8. Bonds payable has a balance of $550,000. Bonds maturing within the next year total $50,000.

Required: Journalize the adjusting and reclassifying entries. Identify the adjustments by number and the reclassifications by letter.

Solution Summary

The attached MS Excel spreadsheet contains detailed examples and instructions on the adjustment and reclassification of various journal entries.