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At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid. Utilities costing $240 were used but not paid, and use of a warehouse space worth $1,900 was provided to a tenant who had not been billed as of the end of the month. Record the required adusting entries related to these events.

Sagot :

anthougo

Answer:

Cullen Corporation

Adjusting Journal Entries:

Debit Maintenance and Repairs Expense $770

Credit Accounts Payable $770

To record costs incurred but not yet paid for.

Debit Utilities Expense $240

Credit Utilities Payable $240

To record utilities expense incurred but not yet paid for.

Debit Rent Receivable $1,900

Credit Rent Revenue $1,900

To record rent revenue due.

Explanation:

a) Data and Analysis:

Maintenance and Repairs Expense $770 Accounts Payable $770

Utilities Expense $240 Utilities Payable $240

Accounts Receivable $1,900 Rent Revenue $1,900

marvineetesh3

The adjusting entries related to these events are shown in the image below.

What is adjustment entries?

Adjusting entries are those journal entries that are normally made at the end of an accounting period.

It is made at the end of the accounting period to assign income and expenditure to the time period in which they actually happened or occurred.

Required information according to the given case:

Maintenance and Repairs Expense is $770, Accounts Payable $770, Utilities Expense is $240 Utilities Payable is $240, Accounts Receivable is $1,900, and Rent Revenue is $1,900.

Therefore, the adjustment entries of the above transactions are given in the image below.

To learn more about the adjustment entries, refer to:

https://brainly.com/question/14697723

View image marvineetesh3
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