Answer and Explanation:
The adjusting journal entries are shown below:
1) Interest Expense $400 ($10,000 × 12% × 3 months ÷ 12 months)
Interest Payable $400
(Being interest expense is recorded)
2) Supplies expense $1,500 ($2,450 - $900)
To Supplies $1,550
(being supplies expense is recorded)
3) Depriciation expense $1,000
Accumulated depriciation - equipment $1,000
(being depreciation expense is recorded)
4) Insurance expense $1,225 ($2,100 × 7 months ÷ 12 months)
To Prepaid insurance $1,225
(Being insurance expense is recorded)
5) Unearned service revenue $7,500 ($30,000 ÷ 4)
Service revenue $7,500
(being service revenue is recorded)
6) Account receivable $4,200
To Service revenue $4,200
(being account receivable is recorded)
7) Salaries and wages expense $5,400 ($9,000 ÷ 5 days × 3 days)
To Salaries and wages payable $5,400
(being salaries & wages expense is recorded)
