Adjusting Journal Entries

DB

CR

a. Debit Cleaning and Office Supplies Expense (income statement)

114

Credit Account Payable (current liability)

114

– to record amounts owing at year-end for cleaning and office supplies

Debit Cleaning and Office Supplies Inventory (current asset)

382

Credit Cleaning and Office Supplies Expense (income statement)

382

– to reclassify cleaning and office supplies on hand at year-end

b. Debit Account Receivable (current asset)

11621

Credit Owner Equity

11621

– to record amounts still owing from customers at the end of the year

c. Debit Inventory (current asset)

6210

Credit Raw Goods (expense)

6210

– to record raw goods that are still on hand at the end of the year