Answer:
1. Dr Insurance expence $300
Cr Prepaid insurance $300
2. Dr Supplies expense $1,600
Cr Supplies Asset $1,600
3. Dr Depreciation expense $200
Cr Accumulated Depreciation $200
4. Dr Unearned Service Revenue $4,000
Cr Service revenue $4,000
Explanation:
Preparation for the adjusting entries for the month of March.
1. Dr Insurance expence $300
Cr Prepaid insurance $300
(Being to record expired Insurance)
2. Dr Supplies expense $1,600
Cr Supplies Asset $1,600
($2,500+$900)
(Being to record Supplies on hand)
3. Dr Depreciation expense $200
Cr Accumulated Depreciation $200
(Being to record Depreciation of equipment)
4. Dr Unearned Service Revenue $4,000
Cr Service revenue $4,000
(2/5*$10,000)
(Being to record two-fifths of the unearned service revenue)
