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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 Preview

For your convenience, I have attached a formatted MS Excel spreadsheet containing the information below. Feel free to contact me in the future in the event that additional assistance is required.

Dakota Company must make three adjusting 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. Expired insurance, $1,800 on December 1, 2007; the fir paid $10,800 for six months' insurance coverage in advance and debited Prepaid Insurance for 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 accounts and ...

Solution Summary

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

$2.19