Answer:
1. Cost of goods manufactured A/c Dr. $2,860
To Supplies $2,860
2. Unearned Revenue A/c Dr. $3,300
To Revenue A/c $3,300
3. Rent Expense A/c Dr. $480
To Prepaid Rent A/c $480
Explanation:
As for the provided information, all the materials consumed during the period, expenses consumed, revenues earned shall be adjusted to the relevant current period.
1. All the supplies are consumed and only $640 of supplies are in hand, assuming when the supplies were bought it was recorded as inventory the supplies consumed during the year shall be charged as expense. For this entry will be: for the amount = $3,500 - $640 = $2,860
Cost of goods manufactured A/c Dr. $2,860
To Supplies $2,860
2. Out of total unearned revenue recorded as liability the revenue which is earned shall be equal to amount of services provided till date.
Adjusting entry will be:
Unearned Revenue A/c Dr. $3,300
To Revenue A/c $3,300
3. Out of the total prepaid rent the rent related to current period, which is consumed shall be treated as expense for the period.
Adjusting entry will be:
Rent Expense A/c Dr. $480
To Prepaid Rent A/c $480