accounting accrual accounts concepts
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Business Finance
Description
Resources: QuickBooks® Online Assignment Supplementary Material, Ch. 4 -Accrual Accounting Concepts Presentation, and "Journal Entries" video
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Using the QuickBooks® Online Assignment Supplementary Material, Ch. 4 -Accrual Accounting Concepts Presentation and the "Journal Entries" video, create the following 7 adjusting entries for Sierra Corporation. All entries should be dated 10/31/2013.
Part 1
3 adjusting journal entries effecting prepaid expenses
- Reflect supply utilization by debiting supply expense for $1,500 and crediting supplies inventory for $1,500
- Reflect insurance utilization by debiting insurance expense for $50 and crediting prepaid insurance for $50.
- Reflect utilization of equipment by debiting depreciation expense for $40 and crediting accumulated depreciation $40.
1 adjusting entry effecting unearned revenues
- Reflect revenue earned in October by debiting unearned revenue for $400 and crediting service revenue for $400.
1 adjusting entry effecting accrued revenues
- Reflect revenue not previously recorded by debiting accounts receivable for $200 and crediting service revenue for $200.
2 adjusting entries effecting accrued expenses
- Reflect interest expense not previously recorded by debiting interest expense for $50 and crediting interest payable for $50.
- Reflect salaries expense earned but not paid out yet by debiting salaries expense for $1,200 and crediting salaries payable for $1,200.
Part 2
Using the input from Part 1, create a new Trial Balance:
- Select "Reports" from the menu along the left-hand side.
- In the Go to report search-box, type Trial Balance.
- Select Trial Balance from the suggestions drop-down.
- Input directly or select the dates to run the report. These dates should correspond to the Sierra Corporation data you input.
- Select the Excel tab at the top left of your screen to export this information into a Microsoft® Excel® document.
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