Question

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.
Required:
a. Prepare the adjusting entries for the items above.

Answer 1

Answer:

A journal was prepared for the entries of items in the question given,

Explanation:

Solution

We prepare a journal entries for the item listed in the question

JOURNAL ENTRY

No                   Accnts $ Explanation              Debit             Credit

1      Debit             Supply expense                 $530.

        Credit           Supplies                                                      $530.

2.     Debit        expense of insurance               $125.

       Credit        Prepaid insurance                                           $125.

3.     Debit          Depreciation expense             $75

       Credit      Accumulated  depreciation

                                Equipment                                                  $75

4.   Debit          Unearned service revenue        $950

      Credit          Service revenue                                               $950

5.    Debit         Accounts receivable                    $330

       Credit         Service revenue                                                $330

6.     Debit           Interest expense                         $80

       Credit           Interest payable                                                $80

7.      Debit        Salaries and wages expense       $1460

        Credit        salaries and wages payable                               $1460

Answer 2

Answer:

Please see below the Adjusting entries for the transactions listed.

Explanation:

ADJUSTING ENTRY

For the month ending October 31.

1.

Debit: Supplies on hand $530

Credit: Accounts Payable $530

To record supplies on hand.

2.

Debit: Insurance Expense $125

Credit: Prepaid Insurance $125

To record insurance expense for the month.

3.

Debit: Depreciation Expense $75

Credit: Accumulated Depreciation $75

To record depreciation expense for the month.

4.

Debit: Unearned Revenue $920

Credit: Service Revenue $920

To record Services performed.

5.

Debit: Accounts Receivables $330

Credit: Service Revenue $330

To record Services performed on account.

6.

Debit: Interest Expense $80

Credit: Accrued Interest $80

To record Interest expense Liability.

7.

Debit: Salaries Expense $1,460

Credit: Accrued Salaries $1,460

To record Salaries expense liability.