Adjusting Entries Examples
Example # 1:
For each of the following cases, prepare the Adjusting Entries at the end of December, 2011:
a. One-third of the fee related to Rs. 60,000 cash received in advance is performed this period.
b. Wages of Rs. 9,000 are earned by workers but not paid as of December 31, 2011.
c. The prepaid Insurance account had a Rs. 5,000 balance on December 31, 2011. An analysis of insurance policies shows that Rs. 2,200 of unexpired insurance benefits remains at December 31, 2012.
d. The company has earned (but not recorded) Rs. 750 of interest from investments in CDs for the year ended December 31, 2011.The interest revenue will be received on January l0, 2012.
e. The company has a bank loan and has incurred (but not recorded) interest expenses of Rs. 3,500 for the year ended December 31, 2011.The company must pay the interest on January 2, 2012.
f. Record the Bad Debt expense for December that estimates total uncollectible accounts at Rs. 1,400.
g. Depreciation on the company’s equipment is Rs. 3,000 by WDM.
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