PROBLEM 2 (10%)

Prepare adjusting entries for the following transactions. Omit explanations.

1. Depreciation on equipment is $1,340 for the accounting period.

2. Interest owed on a loan but not paid or recorded (accrual) is $275.

3. There was no beginning balance of supplies and $550 of office supplies were purchased during the period. At the end of the period $100 of supplies were on hand.

4. Legal service revenues of $4,000 were collected in advance. By year end $900 was still unearned.

5. Salaries incurred by year end but not yet paid or recorded amounted to $900.

No.

Account Titles

Debit

Credit

1.

2.

3.

4.

5.