Account Adjustments

Adjustment and closing process Basic entries

Selected ledger counts used by Alvarez Truck Rental, Inc are listed long
with identifying numbers. Following this list of account numbers and
titles is a series of transactions. For each transaction, you are to
indicate the proper accounts to be debited and credited.

1 Cash 33 Notes
Payable 41 Truck Rental Revenue

2 Accounts Receivable 23 Dividends Payable
51 Advertising Expense

3 Office Supplies 24 Income Taxes Payable 52 office Supplies
EXense4 Unexpired insurance 25 Unearned Revenue
53 Rent Expense

5 Trucks 31 Capital Stock 54 Insurance Expense

6 Accumulated Depreciation: Trucks 32 Retained Earnings
55 Depreciation Expense: Trucks

21 Accounts Payable 33 Dividends 56 Income Taxes Expense


35 Income Summary



Transactions Account(s) Account(s)

Example Paid rent on the building of the current period 53 1

Trucks are purchased by making a 30 % cash don payment and

Issuing a not payable for the balance of the purchase price



b. Fee is received in advance, for rental of truck for a future period



c. Purchased a large quantity of office supplies of credit 3A+ 22A+

d. Bought a three-year insurance policy and paid in full 4A+ 1A-

e. Declared a dividend to e paid in 60 days.



f. Depreciation on trucks is recorded



g. Adjusting entry is made to record liability to Daily News for

Adverting done this period: payment is due next month



h. Adjusting entry is made to record truck rentals earned but not yet

received or recorded





I. Some portion of the truck rentals previously received in advance
have now been eared



j. Made an adjusting entry for office supplies used during this period
52E+ 3A-

K. Made and adjusting entry for office supplies used during this period
54E+ 3A-

l. Made and adjusting entry to accrue income taxes expense at the end of
a profitable period



m. Closed the revenue account at the end of the period



n. Closed the Income Summary account at the end of a Profitable period
32SE- 35SE+

O Closed the Dividends account at the end of the perionds