Office supplies at the beginning of 2024 totaled $980. On August 15, Wolverine purchased an additional $3,200 of office supplies, recorded to the Supplies account. By the end of the year, $480 of office supplies remains.

1. find the balance before the adjustment
2. find december 31 adjustment

Required:

For each item, determine the accounts to be adjusted on December 31, 2024, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year.

Note: Amounts to be deducted should be indicated with a minus sign.

 

Transcribed Image Text:

1. Balance before adjustment December 31 Adjustment December 31 Ending balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Balance before adjustment December 31 Adjustment December 31 Ending balance Deferred Revenue $ $ Prepaid Insurance $ $ Salaries Payable $ $ Interest Payable $ $ Supplies $ Account (1,900) 1,900 Rent Revenue 3,800 $ $ Insurance Expense 12,960 $ (6,480) 6,480 $ 0 $ Salaries Expense 2,800 2,800 $ 129,500 1,900 131,400 0 $ Interest Expense 210 210 $ 6,300 6,480 12,780 0 $ 46,500 2,800 49,300 Supplies Expense $ 0 210 210 0 3,700 3,700 1. Balance before adjustment December 31 Adjustment December 31 Ending balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Balance before adjustment December 31 Adjustment December 31 Ending balance Deferred Revenue $ $ Prepaid Insurance $ $ Salaries Payable $ $ Interest Payable $ $ Supplies $ Account (1,900) 1,900 Rent Revenue 3,800 $ $ Insurance Expense 12,960 $ (6,480) 6,480 $ 0 $ Salaries Expense 2,800 2,800 $ 129,500 1,900 131,400 0 $ Interest Expense 210 210 $ 6,300 6,480 12,780 0 $ 46,500 2,800 49,300 Supplies Expense $ 0 210 210 0 3,700 3,700

Answer rating: 100% (QA)

Below are the adjustments and ending balances for each account on December 31 2024 1 Deferre... View the full answer