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Exercise 4-11 (Algo) Record transactions and adjustments LO 4-2, 4-6, 4-7 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. a. During the month, the Supplies (asset) account was debited $5,000 for supplies purchased. The cost of supplies used during the month was $3,800. 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 $490 was paid for the coming year. Prepaid Insurance was debited. c. Wages of $3,200 were paid for the current month. d. Interest revenue of $210 was received for the current month. e. Accrued $630 of commissions payable to sales staff for the current month. f. Accrued $110 of interest expense at the end of the month. g. Received $2,475 on accounts receivable accrued at the end of the prior month. h. Purchased $650 of merchandise inventory from a supplier on account. i. Paid $110 of interest expense for the month. j. Accrued $890 of wages at the end of the current month. k. Paid $500 of accounts payable. Required: a. Indicate the financial statement effect. b. Prepare the journal entry for the above transactions. Indicate the financial statement effect. Prepare the journal entry for the above transactions. Note: If no entry is required for a transaction/event, select "No journal ent 1 Record the cost of supplies used during the month of $3,800. 2 Record the $490 insurance premium paid for the coming year. 3 Record the $3,200 wages paid for the current month. 4 Record the $210 interest received for the current month. 5 Record the $630 commissions payable to sales staff for the current month. 6 Record the $110 interest accrued at the end of the month. Note : = journal entry has been entered 7 Record the receipt of $2,475 accounts receivable accrued at the end of the prior month. 8 Record the purchase of $650 merchandise inventory from a supplier on account. 9 Record the $110 interest expense paid for the month. 10 Record the $890 wages accrued at the end of the current month. 11 Record the payment of $500 for accounts payable

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