#16 Adjusting Entries

Journalize the adjusting entry needed on December 31, end of the current period for each of the independent cases. Assume for all the different situations that prior adjusting entries were NOT completed.

On June 1, Brown Company received $24,000 cash for a one year subscription to its monthly magazine. The term of the subscription begins on June 1. The company uses an account called unearned subscription Revenue. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit

Clark Company pays its employees every Friday for a five-day work week. The amount of weekly Payroll is $100,000. December 31 of the current year is a Thursday. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit

On September 1 of the current year, Williams Company rented to another company some excess space in one of its buildings. Williams Company received $30,000 cash on September 1. The rental period extends for eight months, starting on September 1. Williams Company credited the Unearned Rent revenue account upon receipt of the rent paid in advance. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit

At the beginning of the year, the company had $1000 in supplies on hand. During the year the company purchased $5,300 in supplies. At the end of the year, the company had $2,000 of supplies still available. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit

Interest was incurred for a loan (Note Payable) in the amount of $3,000. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit

Interest was earned on a Note receivable in the amount of $2,000. Make the appropriate adjusting entry on December 31.

Date	Account Name	Acct. Type	Debit	Credit