Sheet1 1) Journalize the adjusting entries needed on December
31, 2015 for Kaimann Industries using the following data.
Explanations are not required.
A.The balance in the Supplies account before adjustment is
$5,000. A physical count reveals $2,750 of supplies on hand at
December 31.B.A computer was purchased on January 1, 2015 for
$15,000. The computer has a useful life of 3 years and is
depreciated using the straight-line method.C.A one-year insurance
policy costing $6,000 was purchased on November 1, 2015.D.Employee
salaries are owed for 4 days of a regular 5 day work week. Weekly
payroll is $15,000.E.Unearned Maintenance Revenue has a balance of
$22,000 before adjustment. Records show that $14,000 of that amount
has been earned by December 31.
Answer: DateAccountDebitCreditAdjusting EntriesA. Dec.
31Supplies Expense2,250 Supplies2,250 $5,000 - $2,750 = $2,250B.
Dec. 31Depreciation ExpenseComputer5,000 Accumulated
DepreciationComputer5,000 15,000 3 = 5,000C. Dec. 31Insurance
Expense1,000 Prepaid Insurance1,000 $6,000 12 = 500 2 = $1,000D.
Dec. 31Salaries Expense12,000 Salaries Payable12,000 $15,000 5 =
$3,000 4 = $12,000E. Dec. 31Unearned Maintenance Revenue14,000
Maintenance Revenue14,0002) The Schauer Company had the following
adjustments at December 31, 2015, the end of the accounting
period:A.The Schauer Company uses straight-line depreciation for
its equipment. The cost of the equipment is $105,000 and the useful
life is 5 years.B.Accrued interest of $10,000 on a note receivable
will be received in January.C.On November 1, 2015, the Schauer
Company paid $3,000 for six months of rent in advance. The rental
period is November 1, 2015 through April 30, 2016.D.On August 1,
2015, the company collected $24,000 in advance for a consulting
contract, which is to be earned evenly over the next 24 months.
E.Employees are owed salaries for 3 days of a 5 day workweek;
weekly payroll is $30,000.F.The unadjusted balance of the supplies
account is $2,750. Based on a physical count, the cost of supplies
on hand is $1,000.G.The company has incurred interest expense of
$1,000 that will be paid in January.
Requirements:1Journalize the adjusting entries. Explanations are
not required.
Answer: 1DateAccountsDebitCreditA. Dec. 31Depreciation
Expense21,000 Accumulated DepreciationEquipment21,000 $105,000 5 =
$21,000B. Dec. 31Interest Receivable10,000 Interest Revenue10,000C.
Dec. 31Rent Expense1,000 Prepaid Rent1,000 $3,000 6 = $500 2 =
$1,000D. Dec. 31Unearned Service Revenue5,000 Service Revenue5,000
$24,000 24 = $1,000 per month 5 = $5,000E. Dec. 31Salary
Expense18,000 Salary Payable18,000 $30,000 5 = $6,000 per day 3 =
$18,000 F. Dec. 31Supplies Expense1,750 Supplies1,750 $2,750 -
$1,000 = $1,750G. Dec. 31Interest Expense1,000 Interest
Payable1,000
