Problem 3

Aria Busayong Enterprise

GENERAL JOURNAL

Date
Account Titles and Explanation P.R. Debit
1.. No adjusting entry since the commencement of the insurance is on November 1

2 Supplies Expense 12,500

Supplies
To record the supplies used
15,000 - 2,500 = 12,500

3 Unearned Service Income 20,000

Service Income
To record the earned portion of unearned income
70,000 * (2 / 7) = 20,000

4 Depreciation Expense - OE 58,333

Accumulated Depreciation- OE
To record the depreciation
((510,000 - 10,000) / 5) * (7 / 12)

5 Salaries Expense 125,000

Salaries Payable
To record the accrued salaries
150,000 * 5 / 6

6 Repair and Maintenance 23,000

Accounts Payable
To record the unpaid and accrued expense

7 Utiltiies Expense 2,500

Utilties Payable
To record the accrued utiltiies

Balance 241,333
 GJ-1

Credit

12,500

20,000

58,333

125,000

23,000

2,500

241,333
Problem 4

Omega Enterprise
GENERAL JOURNAL

Date
Account Titles and Explanation P.R. Debit
1) Rent Expense 20,000
Prepaid Rent
To record the used portion of prepaid rent
240,000 * 1 /12 = 20,000

2 Supplies Expense 50,000

Supplies
To record the supplies used
14,000 + 65,000 - 29,000 = 50,000

3 Unearned Subscription Income 140,000

Subscription Income
To record the earned portion of unearned income
160,000 + 50,000 - 70,000 = 140,000

4 Depreciation Expense - OE 5,000

Accumulated Depreciation- OE
To record the depreciation
(180,000 / 6) * (2 / 12) = 5,000

5 Interest Expense 1,875

Interest Payable
To record the accrued interest
(90,000 * 5%) * (5 / 12) = 1,875

Balance 216,875
 GJ-1

Credit

20,000

50,000

140,000

5,000

1,875

216,875