Journal Entries and T-accounts for the DeCort Company
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Record the adjusting entries at December 31, using T-accounts.
DeCort Company had these adjusting entry situations at the end of December:
1. May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for 2yrs). This is the first year of the policy-Transaction was recorded as insurance expense.
2. Dec 1-purchased $400 of supplies for cash. The purchase was recorded as an asset, supplies. On Dec 31-it was determined that various supplies was consumed in operations and that the supplies had been consumed in operations and that the supplies costing $300. 00 remained on hand.
3. The company holds a note receivable for $4000. The note is interest bearing. The interest will be received when the note matures. The note is one-year note receivable made on June 30, bearing an interest of % simple interest.
4. The company owes salaries of $800 at the end of December.
5. As of Dec 31- the company received $600 for services to be performed. The services have not been performed as of Dec31. A liability, Unearned Revenue, needs to be recognized, and revenue needs to be reduced.
6. Dec 20- the company received a bill for $400 for advertising in December. The liability account, Accounts Payable, needs to be recognized along with the related expense.
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Solution Summary
Record the adjusting entries at December 31, using T-accounts.
DeCort Company had these adjusting entry situations at the end of December:
1. May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for 2yrs). This is the first year of the policy-Transaction was recorded as insurance expense.
2. Dec 1-purchased $400 of supplies for cash. The purchase was recorded as an asset, supplies. On Dec 31-it was determined that various supplies was consumed in operations and that the supplies had been consumed in operations and that the supplies costing $300. 00 remained on hand.
3. The company holds a note receivable for $4000. The note is interest bearing. The interest will be received when the note matures. The note is one-year note receivable made on June 30, bearing an interest of % simple interest.
4. The company owes salaries of $800 at the end of December.
5. As of Dec 31- the company received $600 for services to be performed. The services have not been performed as of Dec31. A liability, Unearned Revenue, needs to be recognized, and revenue needs to be reduced.
6. Dec 20- the company received a bill for $400 for advertising in December. The liability account, Accounts Payable, needs to be recognized along with the related expense.
Purchase this Solution
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