Share
Explore BrainMass

Explore BrainMass

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 This solution is FREE courtesy of BrainMass!

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 numbers.

Supplies    121

Prepaid Insurance  131

Accum. Depr.---Equip.  142

Depreciation Exp.---Equip.  517

Insurance Expense  521

Supplies Expense   523

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

Supplies Expense 2,500
Supplies 2,500
(To record supplies used)

b. Expired insurance, $1,800 on December 1, 2007; the firm paid $10,800 for six months' insurance
coverage in advance and debited Prepaid Insurance for this amount.

Insurance Expense 1,800
Prepaid Insurance 1,800
(To record use of one month of prepaid insurance)

c. Depreciation expense for equipment $1,200.

Depreciation Expense - Equipment 1,200
Accumulated Depreciation - Equipment 1,200
(To record depreciation expense)

LEDGER
ACCOUNT: Supplies ACC. NO. 121

Balance
Date Item Ref Debit Credit Debit Credit Notes:
Dec. 1, 2007 J1 4,000 Entry for $4,000 in supplies purchased on Dec. 1.
Dec. 31, 2007 J1 2,500 1,500 Entry for $2,500 in used supplies.

LEDGER
ACCOUNT: Supplies Expense ACC. NO. 523

Balance
Date Item Ref Debit Credit Debit Credit
Dec. 31, 2007 J1 2,500 2,500 Entry for $2,500 in supplies expense.

LEDGER
ACCOUNT: Prepaid Insurance ACC. NO. 131

Balance
Date Item Ref Debit Credit Debit Credit
Dec. 1, 2007 J1 10,800 Entry for $10,800 payment towards prepaid insurance.
Dec. 31, 2007 J1 1,800 9,000 Entry for use of $1,800 of prepaid insurance.

LEDGER
ACCOUNT: Insurance Expense ACC. NO. 521

Balance
Date Item Ref Debit Credit Debit Credit
Dec. 31, 2007 J1 1,800 1,800 Entry to record $1,800 of insurance expense.

LEDGER
ACCOUNT: Accumulated Depreciation - Equipment ACC. NO. 142

Balance
Date Item Ref Debit Credit Debit Credit
Dec. 31, 2007 J1 1,200 1,200 Entry to record $1,200 of accumulated depreciation.

LEDGER
ACCOUNT: Depreciation Expense - Equipment ACC. NO. 517

Balance
Date Item Ref Debit Credit Debit Credit
Dec. 31, 2007 J1 1,200 1,200 Entry to record $1,200 of depreciation expense towards equipment.

Attachments