Danville Company specializes in the repair of music equipment and is owned and operated by Harry...


Danville Company specializes in the repair of music equipment and is owned and operated by Harry Nagel. On April 30, 2008, the end of the current year, the accountant for Danville Company prepared the following trial balances:

Danville Company Trial Balance April 30, 2008
Unadjusted Adjusted
Debit Credit Debit Credit
Balances Balances Balances Balances
Cash 12,750 12,750
Accounts Receivable 36,500 36,500
Supplies 3,750 900
Prepaid Insurance 4,750 1,500
Equipment 120,150 120,150
Accumulated Depreciation-Equipment 31,500 34,000
Automobiles 36,500 36,500
Accumulated Depreciation-Automobiles 18,250 20,400
Accounts Payable 8,310 8,800
Salaries Payable - 2,000
Unearned Service Fees 6,000 2,900
Harry Nagel, Capital 131,340 131,340
Harry Nagel, Drawing 25,000 25,000
Service Fees Earned 244,600 247,700
Salary Expense 172,300 174,300
Rent Expense 18,000 18,000
Supplies Expense - 2,850
Depreciation Expense-Equipment - 2,500
Depreciation Expense-Automobiles - 2,150
Utilities Expense 4,300 4,790
Taxes Expense 2,725 2,725
Insurance Expense - 3,250
Miscellaneous Expense 3,275 3,275
440,000 440,000 447,140 447,140

Journalize the seven entries that adjusted the accounts at April 30. None of the accounts were affected by more than one adjusting entry.

Supplies Expense:

Supplies expense account is used in recording the amount of supplies consumed or used in business operations. This account has a normal balance of debit.

Answer and Explanation: 1

Supplies Expense (3,750-900)2,850
Supplies 2,850
To record the supplies consumed.
Insurance Expense3,250
Prepaid Insurance 3,250
To record the expired portion of the prepaid insurance.
Depreciation Expense-Equipment2,500
Accumulated Depreciation-Equipment 2,500
To record the depreciation expense incurred for the equipment.
Depreciation Expense-Automobiles2,150
Accumulated Depreciation 2,150
To record the depreciation incurred for the automobiles.
Unearned Service Fees3,100
Service Fees Earned 3,00
To record the service fees earned.
Salaries Expense2,000
Salaries Payable 2,000
To record the accrued salaries.
Utilities Expense490
Accounts Payable 490
To record the accrued utilities.

Learn more about this topic:

Adjusting Entries: Definition, Types & Examples


Chapter 22 / Lesson 16

Learn the definition of adjusting entries in accounting, and find examples. Explore the various types of adjusting journal entries, and examine how to do them.

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