50.1K

Verified Solution

Link Copied!

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 $4,800 for supplies purchased. The cost of supplies used during the month was $3,700. 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 $480 was paid for the coming year. Prepaid Insurance was debited. c. Wages of $3,050 were paid for the current month. d. Interest revenue of $210 was received for the current month. e. Accrued $660 of commissions payable to sales staff for the current month. f. Accrued $130 of interest expense at the end of the month. g. Received $2,425 on accounts receivable accrued at the end of the prior month. h. Purchased $670 of merchandise inventory from a supplier on account. i. Paid $190 of interest expense for the month. j. Accrued $800 of wages at the end of the current month. k. Paid $560 of accounts payable. Required: a. Indicate the financial statement effect. b. Prepare the journal entry for the above transactions. Complete this question by entering your answers in the tabs below. Indicate the financial statement effect

Answer & Explanation Solved by verified expert

See Answer