Question

Learning Objective 3 3. Unearned Revenue bal. $800 CR E3-24 Journalizing adjusting entries and posting to T-accounts The accounting records of Mackay Architects include the following selected, unadjusted balances at March 31: Accounts Receivable, $1,500; Office Supplies, $700; Prepaid Rent, $2,240; Equipment, $8,000; Accumulated Depreciation Equipment, $0; Salaries Payable, $0; Unearned Revenue, $900; Service Revenue, $4,100; Salaries Expense, $800; Supplies Expense, $0; Rent Expense, SO; Depreciation Expense—Equipment, $0. The data developed for the March 31 adjusting entries are as follows: a. Service revenue accrued, $700. b. Unearned revenue that has been earned, $100. c. Office Supplies on hand $300. d. Salaries owed to employees, $200. e. One month of prepaid rent has expired, $560. f. Depreciation on equipment, $120. Requirements 1. Open a T-account for each account using the unadjusted balances given. 2. Journalize the adjusting entries using the letter and March 31 date in the date column. 3. Post the adjustments to the T-accounts, entering each adjustment by letter. Show each account's adjusted balance.

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Answer 1

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Mackay Answer 2 Event Credit $ Journal Entries Accounts and Explanation Accounts Receivable Service Revenue Debit $ 700.00 700.00 100.00 Service Revenue Unearned Service Revenue 100.00 400.00 This is $ 700- Supplies Expense Office Supplies 400.00 200.00 Salaries Expense Salaries Payable 200.00 e. 560.00 Rent Expense Prepaid Rent 560.00 120.00 Depreciation- Equipment Accumulated Depreciation- Equipment 120.00

Answer 1 & 3
T accounts
Accounts Receivable
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	1,500.00	31-Mar	Closing Balance	2,200.00
a.	Service Revenue	700.00
		2,200.00			2,200.00

Service Revenue
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Closing Balance	4,900.00	31-Mar	Opening Balance	4,100.00
			a.	Accounts Receivable	700.00
			b.	Unearned Service Revenue	100.00
		4,900.00			4,900.00

Unearned Service Revenue
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
b.	Service Revenue	100.00	31-Mar	Opening Balance	900.00
31-Mar	Closing Balance	800.00
		900.00			900.00

Office Supplies
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	700.00	c.	Supplies Expense	400.00
			31-Mar	Closing Balance	300.00
		700.00			700.00

Supplies Expense
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	-	31-Mar	Closing Balance	400.00
c.	Office Supplies	400.00
		400.00			400.00

Salaries Payable
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Closing Balance	200.00	31-Mar	Opening Balance	-
			d.	Salaries Expense	200.00
		200.00			200.00

Salaries Expense
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	800.00	31-Mar	Closing Balance	1,000.00
d.	Salaries Payable	200.00
		1,000.00			1,000.00

Prepaid Rent
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	2,240.00	e.	Rent Expense	560.00
			31-Mar	Closing Balance	1,680.00
		2,240.00			2,240.00

Rent Expense
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	-	31-Mar	Closing Balance	560.00
e.	Prepaid Rent	560.00
		560.00			560.00

Depreciation- Equipment
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Opening Balance	-	31-Mar	Closing Balance	120.00
f.	Accumulated Depreciation- Equipment	120.00
		120.00			120.00

Accumulated Depreciation- Equipment
Event	Accounts and Explanation	Debit $	Date	Accounts and Explanation	Credit $
31-Mar	Closing Balance	120.00	31-Mar	Opening Balance	-
			f.	Depreciation- Equipment	120.00
		120.00			120.00