Answer:
1 Oct.31
Dr Supplies expense $2,460
Cr Supplies $2,460
2. Oct.31
Dr Insurance Expense $100
Cr Prepaid insurance $100
3. Oct.31
Dr Depreciation expense $50
Cr Accumulated depreciation $50
4 Oct.31
Dr Unearned revenue $600
Cr Service revenue $600
5 Oct.31
Dr Accounts receivable $300
Cr Service revenue $300
6 Oct.31
Dr Interest expense $95
Cr Interest payable $95
7 Oct.31
Dr Salaries expesne $1,625
Cr Salaries payable $1,625
Explanation:
Preparation of the adjusting entries
1 Oct.31
Dr Supplies expense $2,460
[2,960-500]
Cr Supplies $2,460
[Being To record supplies expense]
2. Oct.31
Dr Insurance Expense $100
Cr Prepaid insurance $100
[Being To record insurance expense]
3. Oct.31
Dr Depreciation expense $50
Cr Accumulated depreciation $50
[Being To record depreciation expense]
4 Oct.31
Dr Unearned revenue $600
Cr Service revenue $600
[Being To record revenue from unearned]
5 Oct.31
Dr Accounts receivable $300
Cr Service revenue $300
[Being To record accrued revenues]
6 Oct.31
Dr Interest expense $95
Cr Interest payable $95
[Being To record accrued interest expense]
7 Oct.31
Dr Salaries expesne $1,625
Cr Salaries payable $1,625
[Being To record salaries expense]
