Question
Prepare the necessary adjusting entry for the following:
a. During the year, Able Co. purchased $39,600 worth of supplies, at the end of the year, the balance sheet showed a balance of $1,760 in the supplies account.
b. June 30, 2010, the end of the quarter is on a Wednesday. Employees get paid each Friday for the week worked. Abel Co. has five employees who earn $100 per day each. Make the necessary adjusting journal entry for June 30.
c. An asset that cost $50,000 was purchased on January 1. The asset has an estimated useful life of three years and an estimated salvage value of $3,200. Prepare the necessary adjusting journal entry for the end of the year.
d. A company has 20 employees who each earn $500 per week for a 5-day week that begins on Monday. December 31 of 2011 is a Monday and all 20 employees worked that day.
1. Prepare the required adjusting journal entry to record accrued salaries on December 31,2011.
2. Prepare the journal entry to record the payment of salaries on January 4, 2012.