Question

1. Supplies on hand at October 31 total $540.

2. Expired insurance for the month is $125.
3. Depreciation for the month is $150.
4. As of October 31, services worth $920 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $330.
6. Interest expense accrued at October 31 is $80.
7. Accrued salaries at October 31 are $1,500.

Required:
Prepare the adjusting entries for the items above.

Answer 1

Adjusting entries

General Journal

Item 1

Debit : Statement of Financial Position $540

Credit : Supplies $540

Item 2

Debit : Insurance Expense $125

Credit : Prepaid Insurance $125

Item 3

Debit : Depreciation $150

Credit : Accumulated Depreciation $150

Item 4

Debit : Unearned Service Revenue $920

Credit : Service Revenue Earned $920

Item 5

Debit : Trade Receivable $330

Credit : Service Revenue $330

Item 6

Debit : Interest Expense $80

Credit : Note Payable $80

Item 7

Debit : Salaries Expenses $1,500

Credit : Salaries Payable $1,500

Step-by-step explanation:

The adjusting entries for the items have been prepared above.