1.Prepare journal entries without explanations for the following transactions. Write "no entry" if none is needed.
a. Received a $1,000 invoice for this month's electricity. Payment will be made in 2 weeks.
b. Paid $1,200 for insurance premiums to cover the next six months.
c. Dividends of $700 were paid.
d. The utility bill from part "a" is paid.
e. Purchased land for $23,000. The company paid half in cash and issued a promissory note for the other half.
2. Prepare adjusting entries for the following items. Omit explanations.
a. Depreciation on machinery is $940 for the accounting period.
b. Interest incurred on a loan but not paid or recorded is $635.
c. Office supplies of $600 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $200. At the end of the period, $80 in office supplies remained.
d. Commissions amounting to $540 were earned but not recorded or collected by year end.
e. Prepaid Rent had an $8,000 normal balance prior to adjustment. By year end, 40 percent had expired.