Question

--/1.5 Question 1 View Policies Current Attempt in Progress A partial tabular summary of transactions for Teal Mountain Inc. on March 31, 2017, includes the following accounts before adjustments. Assets = Liabilities + Stockholders' Equity Acc. Depr. Unearned Supplies + Prepaid Insurance + Equip. - Equip. - Serv. Rev Rev. - Exp. 2,690 2,320 34,500 -5,520 14,300 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $290 per month. 2. Supplies on hand total $950. 3. The equipment depreciates $230 per month 4. During March, services were performed for two-fifths of the unearned service revenue. Prepare a tabular summary to record adjustments for the month of March. Include an explanation for each adjustment. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Stockholders' Equity Acc. Depr. Equip. Liabilities Unearned Serv. Rev Supplies + Prepaid Insurance + Equip. - Rev. Exp. Unadi. Bal. 2,690 2,320 34,500 -5,520 14,300 Adj. 1 Adj. 2 Adj. 3 Adj. 4 Adi. Bal.

Answer 1

Table

	Assets							=	Liabilities	+	Stockholder's equity
	Supplies	+	Prepaid insurnace	+	Equip	-	Acc.Depr.Equip	=	Unearned serv rev	+	Rev	-	Exp
Unadj Bal	2690		2320		34500		-5520		14300
Adj 1			-290										-290	Insurance expense
Adj 2	-1740												-1740	Supplies expense
Adj 3							-230						-230	depreciation expense
Adj 4									-5720		5720			Revenue earned
Adj Bal	950		2030		34500		-5750		8580		5720		-2260