Question

The ledger of Blossom, Inc. on March 31, 2020, includes the following selected accounts before adjusting entries. Debit Credit Prepaid Insurance 3,000 Supplies 2,800 Equipment 31,000 Unearned Service Revenue 8,900 An analysis of the accounts shows the following.

1. Insurance expires at the rate of $300 per month.
2. Supplies on hand total $1,600.
3. The equipment depreciates $400 per month.
4. During March, services were performed for two-fifths of the unearned service revenue. Prepare the adjusting entries for the month of March. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit
1. Mar. 31 enter an account title to record insurance expired on March 31 enter a debit amount enter a credit amount enter an account title to record insurance expired on March 31 enter a debit amount enter a credit amount (To record insurance expired)
2. Mar. 31 enter an account title to record supplies used on March 31 enter a debit amount enter a credit amount enter an account title to record supplies used on March 31 enter a debit amount enter a credit amount (To record supplies used)
3. Mar. 31 enter an account title to record monthly depreciation on March 31 enter a debit amount enter a credit amount enter an account title to record monthly depreciation on March 31 enter a debit amount enter a credit amount (To record monthly depreciation)
4. Mar. 31 enter an account title to record revenue for services provided on March 31 enter a debit amount enter a credit amount enter an account title to record revenue for services provided on March 31 enter a debit amount enter a credit amount (To record revenue for services provided)

Answer 1

To prepare the adjusting entries for the month of March, the insurance expense, supplies expense, depreciation expense, and revenue for services provided need to be recorded.

Step-by-step explanation:

To prepare the adjusting entries for the month of March, we need to consider the expiration of insurance, the use of supplies, the monthly depreciation of equipment, and the revenue for services provided. Here are the step-by-step entries:

1. Mar. 31 Debit: Insurance Expense → $300 Credit: Prepaid Insurance → $300 (To record insurance expired)
2. Mar. 31 Debit: Supplies Expense → $1,200 Credit: Supplies → $1,200 (To record supplies used)
3. Mar. 31 Debit: Depreciation Expense → $400 Credit: Accumulated Depreciation-Equipment → $400 (To record monthly depreciation)
4. Mar. 31 Debit: Unearned Service Revenue → $3,560 Credit: Service Revenue → $3,560 (To record revenue for services provided)