Question

thornton company faced the following situations.
view the situations.
requirement

1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first,

explanations from any journal entries.)
c. on july 1, 2023, when the business collected $12,600 rent in advance, it debited cash and credited unearned rent revenue. the tena
rent.
d. salary expense is $6,500 per day—monday through friday—and the business pays employees each friday. this year, december 31
e. the unadjusted balance of the supplies account is $3,300. the total cost of supplies on hand is $1,200.

Explanation:

Step1: Calculate supplies expense

The supplies expense is calculated by subtracting the cost of supplies on hand from the unadjusted balance of the Supplies account.
$$\text{Supplies Expense}=\text{Unadjusted Supplies Balance}-\text{Supplies on Hand}$$
$$\text{Supplies Expense}=3300 - 1200=2100$$

Step2: Record the adjusting entry

We debit Supplies Expense (an expense account) and credit Supplies (an asset account) for the amount of supplies used.

Answer:

Accounts	Debit	Credit
Supplies		2100