ADJUSTING ENTRIES QUIZ Review: BAF 3MI
1.
Date
The balance in the Supplies account on January 1, 2013 was $2 018. During the
year, an additional $950 of supplies were purchased. A physical count on December
31, 2013 showed that $430 of supplies were still on hand. Give the year-end
adjusting entry for Supplies. Include a t-account to show your work.
Particulars
2.
Debit
Credit
Paid $12 000 for an insurance policy covering 3 years, starting November 1, 2013.
Give the adjusting entries for December 31, 2013 & December 31, 2014. Show all
your calculations.
Date
Particulars
Debit
Credit
Date
Particulars
Debit
Credit
3.
The late-invoices were received in January 2014, all of which related to year-end
expenses of 2013:
 Advertising bills (Cambridge Times, $150; Global, $400)
 Telephone bill, $90
 Utilities bill, $242
Give the adjusting entry to record these invoices. (2)
Date
Particulars
Debit
Credit
4.
Date
When examining the sales invoices for December 2012, the senior accountant
notices that Preston Company had not yet provided a service to earn any portion of
the $4,000. It was a payment in advance. Give the adjusting entry to record this error.
(2)
Particulars
5.
Debit
Credit
George of the Jungle Delivery has several fixed assets that are depreciated on an
annual basis:
a.
Store Equipment was purchased on May 1, 2012 at a cost of
$15 000. It is estimated
to have a useful life of 5 years and a salvage value of $1 500. It is depreciated using the
straight-line method. Give the adjusting entries that would be required on December 31,
2012 and on December 31, 2013. Show all your calculations and include the formula. (6)
Date
Particulars
Debit
Credit
Date
Particulars
Debit
Credit
a.
Date
A Delivery Truck was purchased on January 1, 2012 at a cost of $32 600. It is estimated
to have a useful life of 8 years and a salvage value of $3 000. It is depreciated using the
declining balance method at a fixed rate of 30%. Calculate the depreciation for 2012 and
2013, including a formula. Show all your work. Give the adjusting entry that would be
required on
December 31, 2012. (5)
Particulars
Debit
Credit