For each of the following 5 conditions, insert the appropriate number into each blank to indicate the type of adjusting journal entry that is required at the end of September.

Adjustment type

1 Converting Assets to Expenses
2 Converting Liabilities to Revenue
3 Accruing Unpaid Expenses
4 Accruing Uncollected Revenue

Adjustment

Type

___ a. Sunset Vineyards delivered $60,000 of wine in September to customers who paid in August.

___ b. During September Sunset Vineyards used $12,000 worth of glass bottles from its inventory of supplies.

___ c. Sunset Vineyards owes $8,000 in wages to its employees at the end of September. Because Sunset pays employees bi-weekly, these wages will not be paid until the first week in October.

___ d. Sunset Vineyards shipped $125,000 of wine to its wholesale customers in September. These customers are billed and pay those bills in October.

___ e. Sunset Vineyards has a balance of pre-paid insurance of $12,000 at the beginning of September. $4,000 of that insurance was used in September.

#2). Prepare an adjusting journal entry for A through D

Possible Accounts:

1. Prepaid Insurance
2. Wine Sales Revenue
3. Unearned Revenue
4. Wages Payable
5. Accounts Receivable
6. Wage Expense
7. Supplies Inventory
8. Insurance Expense
9. Supplies Expense
10. Cash
11. Accounts Payable

Sample Format:

dr Cash (+A) $xxxxx
cr Equipment (-A) $xxxx