Question

Current Attempt in Progress A partial tabular summary of transactions for Skysong, 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. 2,600 2,160 22.500 3,600 10,100 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $270 per month 2 Supplies on hand total $890. 3. The equipment depreciates $150 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 Ungarned Serv. Rev Supplies + Equip. Rev. Exp. Prepaid Insurance + 2.160 Unadj. Bal. 2,600 22,500 -3.600 10.100 Adj, 1 Insurance expense Adj. 2 Supplies expense Adj. 3 Depreciation expense Adj. 4 Service revenue Adj. Bal. e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer

Answer 1

	Assets							=	Liabilities	+	Stockholder's equity
	supplies	+	Prepaid insurance	+	Equip	-	Acc. Depr. Equip	=	Unearned serv reve	+	Rev	-	Exp
Unadj Bal	2600		2160		22500		-3600		10100
Adj 1			-270										-270	Insurance expense
Adj 2	-1710												-1710	Supplies expense
Adj 3							-150						-150	Depreciation expense
Adj 4									-4040		4040			Revenue earned
Adj Bal	890		1890		22500		-3750		6060		4040		-2130