Answer to Question #129762 in Accounting for Fiaz Ahmad

Question

Question2 Prepare Adjusting entries of the following transactions:-
1. Supplies on hand at the end of month Rs.1000
2. Depreciation expense for the month of December Rs. 850
3. salaries are due for the month Rs.15000
4. Unearned client fee earned during the month Rs.5000
5. Prepaid Insurance expired during the month Rs. 2500
6. Client Fee Revenue earned but not received Rs.7600

Answer 1

$$Solution$$

1. Dr supplies a/c Rs.1000

Cr Cash a/c Rs. 1000

To record supplies at the end of month.

2.Dr Depreciation a/c Rs.850

Cr Accumulated Depreciation a/c Rs.850

To record depreciation expense.

3.Dr Salaries Expense a/c Rs.15,000

Cr Salaries payable a/c Rs.15,000

To record the accrued salaries.

4.Dr Unearned Revenue a/c 5,000

Cr Revenue a/c 5,000

To adjust unearned revenue.

5.Dr Insurance Expense a/c 2,500

Cr Prepaid Insurance a/c 2,500

To record expired prepaid insurance.

6.Dr Cash a/c 7,600

Cr Unearned Revenue 7,600

To record earned but not received amount.