Prob-1:

Following information is given relating to the Kamrul & Jahid

Company for their trial balance.
Unearned revenue 30,000
Supplies 20,000
Prepaid insurance 36,000
Furniture 50,000
Mortgage 80,000
Salary Expense 4,000
Additional data:
• Taka 2,000 of supplies remains unused during the month of
May.
• The insurance policy is for 3 years.
• Taka 10,000 of the unearned revenue remains unearned at the
end of the month
• The office furniture has a 5-year life with no salvage value.
Depreciation is not charged during the month of May.
• The mortgage interest rate is 15 %--- (The mortgage was taken
out on May 15)
Instruction:
 Prepare the adjusting journal for the month of May (omit
explanation).
 Post the adjusting entry into the ledger.
 Prepare adjusted trial balance.
Accounting period: 1 month in length (may-1 to May 31)
Solution:
Kamrul & Jahid Company
Adjusting Journal
May-31, XXX

Date Account titles Ref Debit Credit

May-31 Supplies Expense----dr. 18,000
Supplies --------------cr. 18,000
(20,000-2000) =18,000
May-31 Insurance Expense-----dr. 1,000
Prepaid Insurance------cr. 1,000
(36000/36) *1 =1,000
May-31 Unearned Revenue-----dr. 20,000
Revenue------------------cr. 20,000
(30,000-10,000) =20,000
May-31 Depreciation Expense- 833
Furniture-----------------------dr. 833
Accumulated Depreciation-
Furniture--------------------cr.
(50,000/60)=833
May-31 Interest Expense----dr. 500
Interest Payable------cr. 500
(80000*15%)/12x.5=500

Adjusted Ledger
Supplies
Date Exp ref Debit Credit Balance
May-31 Trial Balance 20,000 20,000 dr.
May-31 Adjusting entry 18,000 2,000 dr.

Supplies Expense
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 18,000 18,000 dr.
 Insurance Expense
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 1,000 1,000 dr.

Prepaid Insurance
Date Exp ref Debit Credit Balance
May-31 Trial Balance 36,000 36,000 dr.
May-31 Adjusting entry 1,000 35,000 dr.
Unearned Revenue
Date Exp ref Debit Credit Balance
May-31 Trial Balance 30,000 30,000 Cr.
May-31 Adjusting entry 20,000 10,000 cr.
Revenue
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 20,000 20,000 cr.
Depreciation Expense
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 833 833 dr.
Accumulated Depreciation-Furniture
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 833 cr. 833 cr.
Interest Expense
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 500 500 dr.
Interest payable
Date Exp ref Debit Credit Balance
May-31 Adjusting entry 500 500 cr.
Furniture
Date Exp ref Debit Credit Balance
May-31 Trial Balance 50,000 50,000 dr.
 Mortgage
Date Exp ref Debit Credit Balance
May-1 Opening Balance 80,000 80,000 cr.

Salary Expense
Date Exp ref Debit Credit Balance
May-1 Opening Balance 4,000 4,000 dr.

Adjusted Trial Balance

May-31
Accounts titles Debit Credit
Supplies 2,000
Supplies Expense 18,000
Prepaid Insurance 35,000
Insurance Expense 1,000
Unearned Revenue 10,000
Revenue 20,000
Depreciation Expense 833
Accumulated depreciation 833
Interest Expense 500
Interest Payable 500
Furniture 50,000
Mortgage 80,000
Salary Expense 4,000
Total 1,11,333 1,11,333
Prob-2:
Following information is given relating to the Kamrul & Jahid
Company.
Unearned revenue 30,000
Supplies 20,000
Prepaid insurance 36,000
Furniture 50,000
Mortgage 80,000
Salary Expense 4,000
• Taka 5,000 of supplies used during the quarter.
• The insurance policy is for 3 years.
• Taka 12,000 of the unearned revenue has been earned at the end
of the quarter.
• The furniture has a 3 -year life with no salvage value.
Depreciation is not charged during the first quarter of the year.
• The mortgage interest rate is 20 % (The mortgage was taken out
on Jan-1)
Instruction: Prepare the adjusting journal for the first quarter of
the year.
(Accounting period-January to March)
 Kamrul & Jahid Company
Adjusting Journal
March-31, XXX

Date Account titles Ref Debit Credit

March- Supplies Expense----dr. 5,000
31 Supplies --------------cr. 5,000
(20,000-15,000) =5,000
March- Insurance Expense-----dr. 3,000
31 Prepaid Insurance------cr. 3,000
(36000/36) *3 =3,000
March- Unearned Revenue-----dr. 12,000
31 Revenue------------------cr. 12,000
(30,000-18,000) =12,000
Mar-31 Depreciation Expense-----dr. 4,166
Accumulated Depreciation- 4,166
Furniture--------------------cr.
(50,000/36) *3=4166

Mar-31 Interest Expense----dr. 4,000

Interest Payable------cr. 4,000
(80,000*20%)/12x3=4000
Problem-3:
Mr. Shahir opened a dental practice on January 1, 2020. During the
first month of operations, the following transactions occurred:
1. Mr. Shahir performed services for patients totalling $2,400. These
services have not yet been recorded.
2. Utility expenses incurred but not paid prior to January 31 totalled
$400.
3. Purchased dental equipment on January 1 for $80,000, paying
$20,000 in cash and signing a $60,000, 3-year note payable. The
equipment depreciates $500 per month. Interest is $600 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for
$12,000. Insurance exp dr and prepaid ins----cr. (12000/12)
5. Purchased $2,600 of dental supplies. On January 31, determined
that $900 of supplies were on hand. Usage of supplies= (2600-900)
=1700
Instructions:
Prepare the adjusting entries on January 31 in the books of Shahir.
 Mr. Shahir
Adjusting Journal
Date Account titles Ref Debit Credit
Jan-31 Account Receivable---------dr. 2,400
Service Revenue-------------cr. 2,400
Jan-31 Utility Expense-------------dr. 400
Utilities Payable------------cr. 400
Jan-31 Depreciation expense-dr. 500
Accumulated Depreciation— 500
cr.
Jan-31 Interest expense------dr. 600
Interest Payable------ Cr. 600
Jan-31 Insurance Expense----dr. 1,000
Prepaid insurance------cr. 1,000
(12000/12) =1000
Jan-31 Supplies Expense----dr. 1,700
Supplies---------------cr. 1,700
(2600-900) =1700
Jan- 31, 2020
Problem-4
The ledger of Paresh Rawal Agency on March 31 of the current year
includes the selected accounts, shown below, before adjusting entries
have been prepared
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation-Equipment 8,400
Notes Payable 20,000
Unearned Rent Revenue 10,200
Rent Revenue 60,000
Interest Expense –0–
Salaries and Wages Expense 14,000
An analysis of the accounts shows the following:
1. The equipment depreciates $400 per month.
2. One-third of the unearned rent revenue was earned during the
quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $750.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries on March 31, assuming that adjusting
entries are made quarterly.
 Date Account titles Ref Debit Credit
Mar-31 Depreciation Expense----dr. 1,200
Accumulated Depreciation--cr. 1,200
(400*3=1200)
Mar-31 Unearned Rent Revenue----dr. 3,400
Rent Revenue-----------------cr. 3,400
(1/3*10,200)
Mar-31 Interest Expense----------dr. 500
Interest payable------------cr. 500
Mar-31 Supplies Expense----------dr. 2050
Supplies---------------------cr. 2050
(2800-750) =2050
Mar-31 Insurance Expense--------dr. 900
Prepaid Insurance---------cr. 900
(300*3)
Problem-5
Mrs. Sashi started her own consulting firm, Sashi Consulting, on May
1, 2020. The trial balance on Aug 31 is as follows.
Sashi Consulting
Trial Balance
Aug-31, 2020
Account Title Debit Credit
Cash 4,500
Accounts receivable 6,000
Supplies 1,900
Prepaid Insurance 3,600
Equipment 11,400
Accounts Payable 4,500
Unearned Service Revenue 2,000
Owner’s Capital 18,700
Service revenue 9,500
Salaries and Wages Expense 6,400
Rent Expense 900
Total 34700 34700
Other data:
1. $900 of supplies have been used during the month.
2. Utilities expense incurred but not paid on Aug 31, 2020, $250.
3. The insurance policy is for 2.5 years. The insurance was purchased
on June-1.
4. $400 of the balance in the unearned service revenue account
remains unearned at the end of the accounting period.
5. Invoices representing $1,700 of services performed during the
month have not been recorded as of Aug 31.
Instructions-
a. Prepare the adjusting entries for the accounting period starting
form may and ended up on august.
b. Post the adjusting entries to the ledger accounts.
c. Prepare an adjusted trial balance on August 31, 2020.
Solution: Homework