answer the following questions about prepaid expenses: a. on march 1, meadow tree service prepaid $7,200 for…

answer the following questions about prepaid expenses: a. on march 1, meadow tree service prepaid $7,200 for six - months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year. b. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies. entry table.) date accounts and explanations debit credit march 31 rent expense 1,200 prepaid rent 1,200 to record rent expense. post the march 1 and 31 transactions to the following t - accounts. be sure to calculate the ending balance of the accounts. prepaid rent rent expense march 1 7,200 march 31 1,200 march 31 1,200 balance 6,000 balance 1,200 b. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies. prepare the adjusting journal entry to record the supplies expense at march 31. (record debits first, then credits. select the explanation on the last line of the journal entry table.) date accounts and explanations debit credit march 31

answer the following questions about prepaid expenses: a. on march 1, meadow tree service prepaid $7,200 for six - months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year. b. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies. entry table.) date accounts and explanations debit credit march 31 rent expense 1,200 prepaid rent 1,200 to record rent expense. post the march 1 and 31 transactions to the following t - accounts. be sure to calculate the ending balance of the accounts. prepaid rent rent expense march 1 7,200 march 31 1,200 march 31 1,200 balance 6,000 balance 1,200 b. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies. prepare the adjusting journal entry to record the supplies expense at march 31. (record debits first, then credits. select the explanation on the last line of the journal entry table.) date accounts and explanations debit credit march 31

Answer

Explanation:

Step1: Calculate supplies expense

The supplies expense is the difference between the supplies paid for and the supplies on - hand. Supplies paid = $1,050, Supplies on - hand = $400. So, Supplies expense = $1,050 - $400 = $650.

Step2: Record adjusting journal entry

The adjusting journal entry on March 31 will debit Supplies Expense (to recognize the expense) and credit Supplies (to reduce the asset balance).

Date Accounts and Explanations Debit Credit
March 31 Supplies Expense 650
Supplies 650
To record supplies expense

Step3: Post to T - accounts

For the Supplies account:

  • March 1: Debit $1,050 (initial purchase)
  • March 31: Credit $650 (adjusting entry)
  • Ending balance = $1,050 - $650 = $400

For the Supplies Expense account:

  • March 31: Debit $650 (adjusting entry)
  • Ending balance = $650

Answer:

Date Accounts and Explanations Debit Credit
March 31 Supplies Expense 650
Supplies 650
To record supplies expense
Supplies account ending balance: $400
Supplies Expense account ending balance: $650