Question

Exercise 3-09 Selected accounts of Blue Company are shown below. Beg. Bal. 463 10/15 10/31 10/31 665 Supplies 740 10/31 Salaries and Wages Expense 820 588 Unearned Service Revenue 424 10/20 Service Revenue 10/17 10/31 10/31 Accounts Receivable 1,895 1,806 Salaries and Wages Payable 10/31 Supplies Expense 463 1,895 1,806 424 10/17 10/31 588 10/31

Answer 1

Solution:

Requirement 1: Journal Entries

Date	Account Titles and Explanation	Debit	Credit
10/15	Salaries and Wages Expense	$        820
	Cash		$        820
	(Being wages expenses)
10/17	Accounts Receivables	$    1,895
	Service Revenue		$    1,895
	(Being revenue earned)
10/20	Cash	$        665
	Unearned Service Revenue		$        665
	(Being unearned revenue )

Requirement 2: Adjusting Entries

Date	Account Titles and Explanation	Debit	Credit
10/31	Supplies Expense	$        463
	Supplies		$        463
	(To record use of supplies during October)
10/31	Accounts Receivables	$    1,806
	Service Revenue		$    1,806
	(To record revenue for service performed for which payment has not yet been received)
10/31	Salaries and Wages Expense	$        588
	Salaries and Wages Payable		$        588
	(To record liability for accrued payroll)
10/31	Unearned Service Revenue	$        424
	Service Revenue		$        424
	(To reduce the Unearned Service Revenue account for service that has been performed)