Question

Exercise 4-11 The unadjusted trial balance for Indigo Corporation is shown below. INDIGO CORPORATION Trial Balance October 31, 2022 $15,410 2.770 Niobes Payable 34,650 2,210 1.490 10.730 Uneamed Service Revenue Commen Stock 10.000 Dividends Service Revenue Salaries and Wages Expense Rent Expert $29,080 Assume the following adjustment data. 1. Supplies on hand at October 31 total $560. 2. Expired insurance for the month is $125. 3. Depreciation for the month is $60. As of October 31, services worth $940 related to the previously recorded unearned revenue had been performed. Services performed but unbilled (and no receivable has been recorded) at October 31 are $230. 6. Interest expense accrued at October 31 is $70. 7. Accrued salaries at October 31 are $1,480. Prepare the adjusting entries for the items above. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

No	Date	Account Titles and Explanation	Debit	Credit
1	Dec. 31	Supplies expense	$2,210
		Supplies		$2,210
		( To record supplies expense)
2	Dec. 31	Insurance expense	$125
		Prepaid insurance		$125
		( To record insurance expense)
3	Dec. 31	Depreciation expense	$60
		Accumulated depreciation - Equipment		$60
		( To record depreciation expense)
4	Dec. 31	Unearned revenue	$940
		Service revenue		$940
		( To record unearned revenue)
5	Dec. 31	Accounts receivable	$230
		Service revenue		$230
		( To record service revenue)
6	Dec. 31	Interest expense	$70
		Interest payable		$70
		( To record interest expense)
7	Dec. 31	Salaries expense	$1,480
		Salaries payable		$1,480
		( To record salaries expense)

Supplies expense = Supplies beginning - Supplies ending

= 2,770-560

= $2,210

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