Question

1. Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. Supplies actual count at year end, $6,500 B. Remaining unexpired insurance, $6,000 C. Remaining unearned service revenue, $1,200 D. Salaries owed to employees, $2,400 E. Depreciation on property plant and equipment, $18,000

Answer 1

Answer and Explanation:

The adjusting entries are shown below"

A. Supplies Expense $1,000 ($7,500 - $6,500)

          To Supplies  $1,000

(Being the Supplies Expense is adjusted)  

B. Insurance Expense $18,000 ($24,000 - $6,000)

      To Prepaid Insurance  $18,000

(Being  Insurance Expense is adjusted)  

C. Unearned Service Revenue $1,800 ($3,000 - $1,200)

        To Service Revenue  $1,800

(Being Service Revenue is adjusted)  

D. Salaries Expense $2,400  

          To Salaries Payable  $2,400

(being Salaries Expense is adjusted)  

E. Depreciation Expense $18,000  

       To Accumulated Depreciation-  Property Plant and Equipment  $18,000

(Being Depreciation Expense is adjusted)