Question

Assume the following adjustment data.

1. Supplies on hand at October 31 total $500.
2. Expired insurance for the month is $300.
3. Depreciation for the month is $70.
4. Services related to unearned service revenue in October worth $500 were performed.
5. Services performed but not recorded at October 31 are $200.
6. Interest accrued at October 31 is $90.
7. Accrued salaries at October 31 are $1,700.
Prepare the adjusting entries for the items above.

Answer 1

Adjusting Entries

Date Accounts titles and Explanation Debit Credit

1. Supplies expense $500

Supplies expense $500

2. Insurance expense $300

Prepaid Insurance $300

3. Depreciation expense $ 70

Accumulated depreciation $70

- equipment

4. Unearned service revenue $500

Service revenue $500

5. Accounts receivable $200

Service revenue $200

6. Interest expense $90

Interest payable $90

7. Salaries and wages expense $1,700

Salaries and wages payable $1,700