Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 9

Record transactions and adjustments Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (+) or subtraction (?). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. The first transaction is provided as an illustration.
(Note: As an alternative to using the columns, you may write the journal entry for each transaction or adjustment.)a. During the month, the Supplies (asset) account was debited $3,600 for supplies purchased. The cost of supplies used during the month was $2,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month.
b. An insurance premium of $960 was paid for the coming year. Prepaid Insurance was debited.
c. Wages of $6,400 were paid for the current month.
d. Interest income of $500 was received for the current month.
e. Accrued $1,400 of commissions payable to sales staff for the current month.
f. Accrued $260 of interest expense at the end of the month.
g. Received $4,200 on accounts receivable accrued at the end of the prior month.
h. Purchased $1,200 of merchandise inventory from a supplier on account.
i. Paid $320 of interest expense for the month.
j. Accrued $1,600 of wages at the end of the current month.
k. Paid $1,000 of accounts payable.