Question

Transactions:

1.		Prepaid insurance of $630 has expired.
2.		Supplies on hand at the end of the year total $1,425. The unadjusted balance was $2,600.
3.		Monthly depreciation on equipment is $340.
4.		The services relating to the unearned revenue have been provided and the $475 is to be recognized as revenue.
5.		Salaries earned by employees for the month of $1,900 have not been paid or recorded.
6.		The utility bill for $305 was received on the last day of the month and is unpaid and unrecorded.
7.		Services performed but not collected in cash or recorded total $720.
8.		Interest on a bank loan line of credit of $185 has accrued.
9.		Services have now been performed in the amount of $1,655 on a job that totalled $3,100. The total was paid previously by a customer.
10.		Equipment was purchased for $7,800 and has a useful life of 5 years. The company records its depreciation monthly.
11.		Services were performed for $1,500 but the accounting clerk forgot to prepare and send the invoice to the customer until after the end of the month.

Prepare the monthly adjusting journal entries for the above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Answer 1

Prepare the monthly adjusting journal entries for the above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
1.	Insurance expense	630
	Prepaid insurance		630
2.	Supplies expense (2600-1425)	1175
	Supplies		1175
3.	Depreciation expense	340
	Accumulated depreciation-equipment		340
4.	Unearned revenue	475
	Revenue earned		475
5.	Salaries expense	1900
	Salaries payable		1900
6.	Utilities expense	305
	Utilities payable		305
7.	Account receivable	720
	Service revenue		720
8.	Interest expense	185
	Interest payable		185
9.	Unearned revenue	1665
	Service revenue		1665
10.	Depreciation expense (7800/5)/12	130
	Accumulated depreciation-equipment		130
11.	Account receivable	1500
	Service revenue		1500