This exercise will provide practice in determining which adjusting entries may be reversed.
The following represent adjusting entries prepared for the Office Furniture Design Company.
|
1 Interest Expense |
700 |
|
|
Interest Payable |
700 |
|
|
2.Depreciation Expense |
1.100 |
|
|
Accumulated Depreciation |
I. 100 |
|
|
3.Rent Receivable |
600 |
|
|
Rent Rayne |
110 |
|
|
4.Insurance Expense |
400 |
|
|
Prepaid Insurance |
400 |
|
|
5.Accounts Receivable (or Fees Receivable) |
300 |
|
|
Fees Revenue |
300 |
|
|
6.Supplies Expense |
200 |
|
|
Prepaid Supplies |
200 |
|
|
7.Salaries and Wages Expense |
I 000 |
|
|
Salaries and Wages Payable |
I .UUU |
|
|
8.Unearned Subscription Revenue |
1.200 |
|
|
Subscription Revenue |
1.200 |
Instructions
For each adjusting entry above (prepared at December 31, 2014), indicate if it would be appropriate to reverse the entry at the beginning of 2015. Indicate your answer by writing yes or no in the space provided.