Reference no: EM13349313
Question :
Case 1
The Thoma Company started the year with a $3,000 balance in the Supplies account. In the year, $8,500 of additional supplies was purchased. A physical count of supplies on hand at the end of the year revealed that $8,300 worth of supplies had been used through the year. No adjusting entry has been made until year end.
Case 2
The Leno Company has a calendar year-end accounting period. On July 1, the company purchased office equipment for $30,000. It is evaluated that the office equipment will depreciate $200 each month. No adjusting entry has been made until year end.
Case 3
Yeats Realty is in the business of renting numerous apartment buildings and prepares monthly financial statements. It has been evaluated that 2 tenants in $900 per month apartments and one tenant in the $1,000 per month apartment had not paid their December lease as of 31st December.
Purpose the required end-of-period adjusting entries for each independent case given above. (Credit account titles are routinely indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the question.)
Case
Account Titles and Explanation
Debit
Credit
1.
(To record supplies used during the year)
2.
(To record depreciation expense for six months)
3.
(To accrue rent recognized but not yet received)