Accounting
Accounting
• June 30, 2006 Love Thy Pet Inc,. paid $19,200 cash to the rental company for the next 12 months rent.
• December 31, 2006 Adjusted the amount of rent used during the period between June 30 and December 31.
• June 28, 2006 Received $5,000 cash for two bulldogs to be delivered within the next year by a breeder.
• December 31, 2006 Record revenues earned during the past six months. One of the bull doges was delivered by the breeder
• June 6, 2006 Love Thy Pet Inc,. purchased office equipment for $15,000 cash with an estimated usefully life of 5 years. The residual value of the equipment is expected to be $3,000.
• December 31, 2006 Record depreciation for office equipment. Time period is June 6, 2006 to December 31, 2006. Love Thy Pet uses the straight-line method of
depreciation.
• June 1, 2006 The Hatfield Company borrowed $10,000 for Love Thy Pet Inc,. The note is for 1 year and has an interest rate of 6%.
• December 31, 2006 Record the accrued interest for the Hatfield Company’s Notes receivable. The time period is from June 1, 2006 to December 31, 2006. Use the simple interest method.
Types of Adjustments
Prepayments:
Prepaid Expenses
Unearned Revenues
Depreciation
Accruals:
Accrued Revenues
Accrued Expenses
Prepayments
Types of Adjustments:
Prepaid Expenses
Unearned Revenues
Depreciation
Prepaid Expense
Original Journal Entry
June 30, 2006 Love Thy Pet Inc,. paid $19,200 cash to the rental company for the next 12 months rent.
Prepaid Expenses
Original Ledger Entries
June 30, 2006 Love Thy Pet Inc,. paid $19,200 cash to the rental company for the next 12 months rent.
Prepaid Expense
Adjusting Journal Entry
December 31, 2006 Adjusted the amount of rent used during the period between June 30 and December 31.
Prepaid Expenses
Adjusting Ledger Entries
December 31, 2006 Adjusted the amount of rent used during the period between June 30 and December 31.
Unearned Revenue
Original Journal Entry
June 28, 2006 Received $5,000 cash for two bulldogs to be delivered within the next year by a breeder.
Unearned Revenue
Original Ledger Entries
June 28, 2006 Received $5,000 cash for two bulldogs to be delivered within the next year by a breeder.
Unearned Revenue
Adjusting Journal Entry
December 31, 2006 Record revenues earned during the
past six months. One of the bull doges was delivered by the breeder
Unearned Revenue
Adjusting Ledger Entries
December 31, 2006 Record revenues earned during the past six months. One of the bull doges was
Depreciation
Original Journal Entry
June 6, 2006 Love Thy Pet Inc,. purchased office equipment for $15,000 cash with an estimated usefully life of 5 years. The residual value of the equipment is expected to be
Depreciation
Original Ledger Entries
June 6, 2006 Love Thy Pet Inc,. purchased office
equipment for $15,000 cash with an estimated usefully life of 5 years. The residual value of the equipment is expected
Depreciation
Adjusting Journal Entry
December 31, 2006 Record depreciation for office
equipment. Time period is June 6, 2006 to December 31, 2006. Love Thy Pet uses the straight-line method of
depreciation.
Depreciation
Adjusting Ledger Entries
December 31, 2006 Record depreciation for office
equipment. Time period is June 6, 2006 to December 31, 2006. Love Thy Pet Inc,. uses the straight-line method of depreciation.
Accruals
Types of Adjustments:
Accrued Revenues
Accrued Expenses
Accrued Revenue
Original Journal Entry
June 1, 2006 The Hatfield Company borrowed $10,000 for Love Thy Pet Inc,. The note is for 1 year and has an interest
Accrued Revenue
Original Ledger Entries
June 1, 2006 The Hatfield Company borrowed $10,000 for Love Thy Pet Inc,. The note is for 1 year and has an
Accrued Revenue
Adjusting Journal Entry
December 31, 2006 Record the accrued interest for the Hatfield Company’s Notes receivable. The time period is from June 1, 2006 to December 31, 2006. Use the simple interest method.
Accrued Revenue
Adjusting Ledger Entries
December 31, 2006 Record the accrued interest for the Hatfield Company’s Notes receivable. The time period is from June 1, 2006 to December 31, 2006. Use the simple interest method.
Accrued Expense
Salary Expense Calendar for December
20XX
25 Pay Day 24 23 22 21 20 19 18 17 16 15 14 13 12 11 Pay Day 10 9 8 7 6 5 4 3 2 1 SAT FRI THUR WED TUE MON SUNAccrued Expense
Adjusting Journal Entry
December 31, 2006 Two employees are paid in total $800 each bi-week to be paid evenly over a 5 day work week. What would be the accrued expense for employees?
Accrued Expense
Adjusting Ledger Entries
December 31, 2006 Two employees are paid in total $800 each bi-week to be paid evenly over a 5 day work week. What would be the accrued expense for employees?
Data from original entries and date for adjusting entries.
• January 31, 2006 Marie purchased a two-year insurance policy costing $2,400 that will expire January 31, 2008.
• December 31, 2007 record the use of the insurance policy up to December 31, 2007.
• January 5, 2006 Marie purchased pet store equipment for $7,500 in cash. • February 1, 2006 Marie purchased and placed into use pet store equipment
for $30,000 and took out a $50,000 note with terms of 1 year at 6%. • December 31, 2006 Accrue interest on notes payable.
• December 31, 2006 record depreciation on pet store equipment. Straight
Additional Information that can be used to practice adjusting entries. Use this information to practice adjusting entries not
