C(a)The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies. (b)The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded.
(c)The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday.
(d)The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned.
(e)At the end of the month $5,700 of services had been performed but not yet billed.
Required:
Prepare adjusting entries for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.* The journal should have 10 rows.

Chart of accounts.

CHART OF ACCOUNTS.

General Ledger

ASSETS
11Cash
12Accounts Receivable
13Supplies
14Prepaid Rent
16Office Equipment
17Accumulated Depreciation
LIABILITIES
21Accounts Payable
22Notes Payable
23Unearned Fees
24Wages and Salary Payable
25Interest Payable
EQUITY
31Common Stock
32Retained Earnings
33Dividends
REVENUE
41Fees Earned
EXPENSES
51Advertising Expense
52Insurance Expense
53Interest Expense
54Wages and Salary Expense
55Supplies Expense
56Utilities Expense
57Depreciation Expense
58Rent Expense
59Miscellaneous Expense

                         Adjusting entry

NoAccount & Explanation         Debit     Credit

a)     Supplies Expense                  $637

        (245+735-343)

             Supplies                                           $637

        (To record supplies adjusted)  

b)      Interest expense                    $170

              Interest payable                              $170

        (To record accrued interest)

c)      Wages and salaries expense $5350

              Wages & salaries payable              $5350

        (To record wages and salaries expense)

d)      Unearned fees                        $27600

         (46000*60%)

               Fees earned                                    $27600

         (To record fees earned)

e)       Account receivable                $5700

               Fees earned                                   $5700

         (To record fees earned)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

engine assembler, survey reasearcher, auditor