Question

The ledger of Marin Inc. on March 31, 2017, includes the following selected accounts before adjusting entries.

Answer 1

Answer:

Explanation:

The adjusting entries are shown below:

1. Prepaid insurance expense A/c Dr $280

            To Prepaid insurance A/c                    $280

(Being prepaid insurance is adjusted)

2. Supplies expense A/c Dr $3,005 ($3,970 - $965)

         To Supplies A/c                       $3,005

(Being supplies adjusted)

3. Depreciation Expense A/c Dr $190

          To Accumulated depreciation     $190

(Being depreciation expense is adjusted)

4. Unearned service revenue A/c Dr $4,680  ($11,700 × 2 ÷ 5)

           To  service revenue                                $4,680

(Being unearned service is adjusted)