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DiKsa [7]
3 years ago
5

The ledger of Umatilla, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.

Business
1 answer:
alexgriva [62]3 years ago
6 0

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)

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