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Question 1

April 1, Canadian Enterprises had a beginning balance in the Office Supplies account of $1,310.

During the month, Canadian Enterprises purchased office supplies for $1,760.

April 30, Canadian Enterprises had office supplies of $2,170 on hand.

A. Open the Office Supplies T account, and enter the beginning balance and purchase of office supplies and the end total of the beginning balance.

Office Supplies
DebitCredit
Double lineDouble line

B. Record the adjusting entry required at April 30.

Journal
DateDescriptionDebitCredit
April 30
April 30

C. Post the adjusting entry to the two accounts involved, and show their balances at April 30.

Office Supplies
DebitCredit
Double lineDouble line

Supplies Expense
DebitCredit
Double lineDouble line


Question 2

Fly Away Travel borrowed $27,000 on August 1, 2019, by signing a one-year note payable to Region One Bank.

Fly Away Travel's interest expense on the note payable for the remainder of the fiscal year (August through October) is $500.

A. Record the adjusting entry to accrue interest expense at October 31, 2019.

Journal
DateDescriptionDebitCredit
October 31
October 31

B. Post the adjusting entry to the T accounts of the two accounts affected by the adjustment.

Interest Payable
DebitCredit
Double lineDouble line

Interest Expense
DebitCredit
Double lineDouble line