Question

Part 2 Required: A. Prepare adjusting entries using the information below: Feb 28th One month of the fire insurance policy has expired. Feb 28th By the end of February, $4,750 of services had been provided to students who paid for advanced tutoring services on Feb. 18th Unpaid salaries at the end of February as $11,600. Feb 28th Supplies on hand at the end of February totaled $1,500. Feb 28 Feb 28 Depreciation on the building for the month was $625. Feb 28th Accrued Interest associated with note payable of $1,250. B. Update General Ledger used in Part 1 C. Prepare an Adjusted Trial balance in good form

Answer 1

Adjusting entries

Account Titles	Debit	Credit
Insurance Expense	$               217
Prepaid Insurance		$               217
(Prepaid insurance expired during the period)
Unearned Revenue	$            4,750
Tutoring Service Revenue		$            4,750
(Provided services for advance received)
Supplies Expense	$            7,600
Supplies		$            7,600
(Supplies consumed during the period)
Depreciation Expense	$               625
Accumulated Depreciation		$               625
(Depreciation Expense for month)
Interest Expense	$            1,250
Interest Payable		$            1,250
(Interest accrued for the month)

	Adjusted Trial Balance
Account Titles	Debit	Credit
Cash	$          40,820
Accounts Receivable	$            6,840
Supplies	$            1,500
Prepaid Insurnace	$            7,583
Land	$          68,000
Building	$       1,50,000
Accumulated Depreciation		$               625
Accounts Payable		$            1,450
Unearned Revenue		$            5,750
Notes Payable		$      1,25,000
Interest Payable		$            1,250
Common Stock		$      1,00,000
Retained Earnings		$          27,400
Dividends	$            2,000
Sales Revenue		$          40,590
Insurance Expense	$               217
Interest Expense	$            1,250
Wages Expense	$          12,300
Supplies expense	$            7,600
Utilities Expense	$            3,330
Depreciation Expense	$               625
Total	$       3,02,065	$      3,02,065