Question

Prepare the adjusting entries on January 31.

1. Supplies on hand at October 31 total $530.
2. Expired insurance for the month is $125.
3. Depreciation for the month is $75.
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 $1,460.

Answer 1

Step-by-step explanation:

The Journal entry is shown below:-

1. Supplies A/c Dr, $530

To supplies expenses $530

(Being supplies on hand is recorded)

2. Insurance Dr, $125

To Prepaid insurance $125

(Being Insurance for the month is recorded)

3. Depreciation Dr, $75

To Accumulated depreciation $75

(Being depreciation is recorded)

4. Unearned revenue Dr, $920

To service revenue $920

(Being unearned revenue is recorded)

5. Accounts receivable Dr, $330

To service revenue $330

(Being service accounts receivable is recorded)

6. Interest expenses Dr, $80

To Interest payable $80

(Being interest expense is recorded)

7. Salaries expense Dr, $1460

To Salary payable $1460

(Being salary expense is recorded)