Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. The Supplies account shows a balance of $820, but a count of supplies reveals only $350 on hand. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $560 in Insurance expense. A review of insurance policies reveals that $195 of insurance is unexpired. Flint Hills employees work Monday through Friday, and salaries of $3,800 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. On December 31, 2021, Flint Hills received a utility bill for December electricity usage of $330 that will be paid in early January of 2022.
Required: Prepare adjusting journal entries, as needed, for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. The Supplies account shows a balance of $680, but a count of supplies reveals only $280 on hand.
2. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $490 in Insurance expense. A review of insurance policies reveals that $160 of insurance is unexpired.
3. Flint Hills employees work Monday through Friday, and salaries of $3,100 per week are paid each Friday. Flint Hills' year-end falls on Tuesday.
4. On December 31, 2018, Flint Hills received a utility bill for December electricity usage of $260 that will be paid in early January of 2019.
Event General Journal Debit Credit
1
2
3
4

1. Based on the information given we were told that the company Supplies account shows a balance amount of $820 while the count of supplies shows only the amount of $350 on hand which means that the Journal entry will be:

Dr Supplies expense 470

Cr Supplies 470

(820-350)

2. Based on the information given we were told that the company trial balance reveal a balance of the amount of $560 in Insurance expense in which a review of the insurance policies shows that the amount $195 of insurance is unexpired which means that the Journal entry will be:

Dr Prepaid insurance 195

Cr Insurance expense 195

3. Based on the information given we were told that the company employees work from Monday through Friday in which salaries of the amount of $3,800 per week are paid each Friday while the company year-end falls on Tuesday which means that the Journal entry will be:

Dr Salaries expense 1,520

Cr Salaries payable 1,520

[(3,800÷5days)*2]

4. Based on the information given we were told that the company received a utility bill of the amount of $330 in December that will be paid in early January of 2022 which means that the Journal entry will be:

Dr Utilities expense 330

Cr Utilities payable 330

QUESTION 2

1. Based on the information given we were told that the company Supplies account shows a balance amount of $680 while the count of supplies shows only the amount of $280 on hand which means that the Journal entry will be:

Dr Supplies expense 400

Cr Supplies 400

(680-280)

2. Based on the information given we were told that the company trial balance reveal a balance of the amount of $490 in Insurance expense in which a review of the insurance policies shows that the amount $160 of insurance is unexpired which means that the Journal entry will be:

Dr Prepaid insurance 160

Cr Insurance expense 160

3. Based on the information given we were told that the company employees work from Monday through Friday in which salaries of the amount of $3,100 per week are paid each Friday while the company year-end falls on Tuesday which means that the Journal entry will be:

Dr Salaries expense 1,240

Cr Salaries payable 1,240

[(3,100÷5days)*2]

4. Based on the information given we were told that the company received a utility bill of the amount of $260 in December that will be paid in early January of 2022 which means that the Journal entry will be:

Dr Utilities expense 260

Cr Utilities payable 260