Answer:
Step-by-step explanation:
The adjusting entries are shown below:
1. Rent Expenses A/c $1,195 ($4,780 ÷ 4 months)
To Prepaid rent A/c $1,195
(Being the prepaid rent is adjusted)
2. Supplies expense A/c Dr $1,950
To supplies A/c $1,950
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies balance - supplies on hand
= $3,700 - $1,750
= $1,950
3. Depreciation Expense A/c Dr $750
To Accumulated Depreciation - Equipment A/c $750
(Being depreciation expense is recorded)
The computation is shown below:
= ($36,000 ÷ 4 years) × 1 months ÷ 12 months
= $750
4. Wages expenses A/c $860
To wages payable A/c $860
(Being the wages are adjusted)
5. Utilities expense A/c Dr $400
To Utilities payable A/c $400
(Being the utilities are adjusted)
6. Unearned Service revenue A/c $530
To Service revenue A/c 530
(Being the unearned Service revenue is recorded)