Answer and Explanation:
The adjusting entries are as follows
1. Insurance expense $200
To Prepaid insurance $200
(Being insurance expense is recorded)
For recording this we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets
2. Supplies expense $1,700 ($2,800 - $1,100)
To Supplies $1,700
(Being supplies expense is recorded)
For recording this we debited the supplies expense as it increased the expense and credited the supplies as it decreased the assets
3. Depreciation expense $300
To Accumulated depreciation - Equipment $300
(Being the depreciation expense is recorded)
For recording this we debited the depreciation expense as it increased the expenses and credited the accumulated depreciation as it decreased the value of the assets
4. Unearned service revenue $3,360 ($8,400 × 2 ÷ 5)
To Service revenue $3,360
(Being the unearned service revenue is recorded)
For recording this we debited the unearned service revenue as it decreased the liability and credited the service revenue as it increased the revenue
