Question

Debit Credit Cash $6,850 Accounts Receivable 7,000 Supplies 1,982 Prepaid Insurance 3,180 Equipment 15,000 Accounts Payable $ 4,245 Unearned Service Revenue 5,200 Common Stock 21,982 Service Revenue 8,300 Salaries and Wages Expense 4,000 Rent Expense 1,715 $39,727 $39,727 In addition to those accounts listed on the trial balance, the chart of accounts for Richard also contains the following accounts: Accumulated Depreciation Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. Supplies on hand at June 30 total $720. 2. A utility bill for $250 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. Services were performed for $4,330 of unearned service revenue by the end of the month. 5. Salaries of $1,450 are accrued at June 30. 6. The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months. 7. Invoices representing $4,270 of services performed by Richard during the month have not been recorded as of June 30.

Answer 1

Adjusting entry for the month of June:

No.	Account title and Explanation	Debit	Credit
1	Supplies expense [$1,982-$720]	$1,262
	Supplies		$1,262
	[To record supplies expense]
2	Utilities expense	$250
	Accounts payable		$250
	[To record accrued utilities expense]
3	Insurance expense [3,180 x 1/12]	$265
	Prepaid insurance		$265
	[To record insurance expense]
4	Unearned service revenue	$4,330
	Service revenue		$4,330
	[To record revenue from unearned]
5	Salaries and wages expense	$1,450
	Salaries and wages payable		$1,450
	[To record accrued salaries]
6	Depreciation expense	$250
	Accumulated depreciation		$250
	[To record depreciation expense]
7	Accounts receivable	$4,270
	Service revenue		$4,270
	[To record accrued service revenue]