Answer to Question #164365 in Accounting for Simranjeet

Question

The following information is available for Barton Corporation on September 30 for the year just ended.

1. A review of the $2,500 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $2,350.
2. The estimated yearly depreciation on the furniture is $500.
3. $4,350 of the advertising paid for in advance has been published by the newspaper.
4. Barton Corporation purchased a building in a previous year for $44,500 and plans to sell this building for $14,500 at the end of its ten-year useful life.
5. Property taxes of $5,500 have accrued but are unrecorded.
6. A review of the $24,500 unadjusted balance in the prepaid rent account shows a remaining balance of $23,500 at the end of the year.
7. Unpaid and unrecorded advertising bills at year-end totalled $9,000.
8. The estimated yearly depreciation on the equipment is $600.
9. Wages of $47,500 have been earned by Barton Corporation's employees but have not yet been paid.
10. $500 of the rent paid to Barton Corporation in advance has been earned.

Prepare the required adjusting entries at September 30, 2014.

Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).

Answer 1

30/Sep Dr: Supplies expense account                 $150

           Cr: Supplies account                                   $150

30/Sep Dr: Depreciation expense – Furniture      $500

            Cr: Accumulated depreciation                   $500

30/Sep Dr: Advertising expense                              $4,350

           Cr: Prepaid advertising                                $4,350

30/Sep Dr: Depreciation expense – Building       $3,000

            Cr: Accumulated depreciation                    $3,000

30/Sep Dr: Property taxes expense                         $5,500

          Cr: Property taxes payable                          $5,500

30/Sep Dr: Prepaid rent                                             $1,000

           Cr: Cash                                                        $1,000

30/Sep Dr: Advertising expense                              $9,000

            Cr: Advertising payable                               $9,000

30/Sep Dr: Depreciation expense – Equipment    $600

            Cr: Accumulated depreciation                   $600

30/Sep Dr: Wages expense                                     $47,500

            Cr: Wages payable                                      $47,500

30/Sep Dr: Unearned rent revenue                          $500

            Cr: Rent revenue                                           $500