Question

The unadjusted trial balance for Cheyenne Corp. is shown below.

CHEYENNE CORP. Trial Balance October 31, 2017 Credit Debit $15,620 2,550 660 5,490 Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense $5,490 2,750 1,980 11,330 520 13,900 4,000 6,610 $35,450 $35,450 Assume the following adjustment data. 1. 2. 3. 4. 5. 6. 7. Supplies on hand at October 31 total $510. Expired insurance for the month is $110. Depreciation for the month is $100. As of October 31, services worth $970 related to the previously recorded unearned revenue had been performed. Services performed but unbilled (and no receivable has been recorded) at October 31 are $260. Interest expense accrued at October 31 is $75. Accrued salaries at October 31 are $1,520.

Answer 1

No	Date	Account Titles and Explanation	Debit	Credit
1	Oct.31	Supplies expense	$2,040
		Supplies		$2,040
		( To record supplies expense)
2	Oct.31	Insurance expense	$110
		Prepaid insurance		$110
		( To record Insurance expense)
3	Oct.31	Depreciation expense	$100
		Accumulated depreciation - Equipment		$100
		( To record depreciation expense)
4	Oct.31	Unearned service revenue	$970
		Service revenue		$970
		(To record unearned service revenue)
5	Oct.31	Accounts receivable	$260
		Service revenue		$260
		( To record unbilled service revenue)
6	Oct.31	Interest expense	$75
		Interest payable		$75
		( To record Interest expense)
7	Oct.31	Salaries expense	$1,520
		Salaries payable
		( To record Salary expense)

Supplies expense = Supplies beginning - Supplies ending

= 2,550-510

= $2,040

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