Exercise 8-7 Adjusting Journal Entries - Prepaid Expenses and Unearned Income GENERAL JOURNAL

Date
2011 Dec 31 Supplies Expense (2,190 - 1,410) 780 780

Page 1 PR Debit Credit

Account Title

Unused Supplies To record supplies used for the period.

31 Prepaid Insurance <36,000 - (36,000/12 x 3)> Insurance Expense To record unexpired insurance for the period

27,000 27,000

31 Prepaid Interest Interest Expense To record unexpired interest. <400 - (45/360 x 400)>

100 100

31 Prepaid Advertising <18,600 - (18.600/12 x 9)> Advertising Expense To record unused advertising.

4,650 4,650

31 Interest Expense <4,500/10 x 4> Prepaid Interest To record interest expense for the period.

1,800 1,800

31 Unearned Rent <54,000 - (54.000/3 x 1.5)> Rent Income To record earned portion of the unearned rent.

27,000 27,000

Exercise 8-8 Adjusting Journal Entries - Accrued Expense, Accrued Income. Prepaid Expenses and Unearned Income GENERAL JOURNAL
Date
2011 Dec 31 Rent Receivable <12,000 x 3> Rent Income To record rent income earned for the period 36,000 36,000

Page 2 PR Debit Credit

Account Title

31 Salaries and Wages Expense Salaries and Wages Payable To record salaries and wages incurred for the period.

26,750 26,750

31 Subscription Income <156,000 - (156,000/6 x 5)> Unearned Subscripion To record unearned portion of subscription

26,000 26,000

31 Interest Expense (1,800 x 43/60) Prepaid Interest To record interest expense for the period

1,290 1,290

31 No entry

31 Unearned Rent <18,000 + (48.000/12 x 7)> Rent Income To record earned portion of the unearned rent.

46,000 46,000

31 Interest Expense <400,000 x 15% x 5/12> Interest Payable To record interest expense for the period

25,000 25,000

31 Interest Receivable (24,000 x .17 x 120/360) x 56/120 Interest Income To record interest earned

634.67 634.67

31 Interest Income <6,800 - (6,800/24 x 7)> Unearned Interest To record unearned portion of the interest

4,816.67 4816,67

31 Unearned Subscription Subscription Income To record earned portion of the subscription <24,000/12 x 3) + <48,000/24 x 12>+<72.000/36 x 5>

40,000 40,000