Question

ements. * Requirements In the last line of the journa . Journalize the ber 31, Fernvill Insurance Ex Prepaid Insur 1. Journalize the adjusting entries on December 31 2. The four-column ledger accounts have been opened for you using the unadjusted trial balance. Post the adjusting entries to the ledger accounts. 3. Prepare the adjusted trial balance. 4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain. Print Done of them

please answer all parts.

Answer 1

1)	Adjusting Entries
	Particulars				Debit	Credit
a)	Insurance Expense				$ 2,600.00
	To Prepaid Insurance					$ 2,600.00
	($ 3500 - $ 900)
b)	Supplies Expense				$    900.00
	To Office Supplies					$    900.00
	($ 1500 - $ 600)
c)	Depreciation Expense				$ 4,100.00
	To Accumulated Depreciation					$ 4,100.00
d)	Salaries and Expense				$ 1,040.00
	To Salaries Payable					$ 1,040.00
	($ 2600 x 2/5)
e)	Unearned Revenue				$ 1,900.00
	To Service Revenue					$ 1,900.00
	($ 2800 - $ 900)

2)	Insurance Expense					Prepaid Insurance					Unearned Revenue
	a)	$ 2,600.00				Beg. Bal.	$     3,500.00	a)	$     2,600.00		e)	$   1,900.00	Beg. Bal.	$   2,800.00
								End. Bal	$         900.00		End. Bal.	$      900.00
	Supplies Expense					Office Supplies					Service Revenue
	b)	$    900.00				Beg. Bal.	$     1,500.00	b)	$         900.00		End. Bal.	$ 19,400.00	Beg. Bal.	$ 17,500.00
								End. Bal.	$         600.00				e)	$   1,900.00
	Depreciation Expense					Accumulated Depreciation
	c)	$ 4,100.00				End. Bal.	$ 344,100.00	Beg. Bal.	$ 340,000.00
								c)	$     4,100.00
	Salaries Expense					Salaries Payable
	Beg. Bal.	$ 3,300.00				End. Bal.	$     1,040.00	Beg. Bal.	$                  -
	d)	$ 1,040.00	End. Bal	$ 4,340.00				d)	$     1,040.00

Adjusted Trial Balance
Cash			$   10,800.00
Accounts Receivable			$   16,800.00
Prepaid Insurance			$         900.00
Office Supplies			$         600.00
Building			$ 420,000.00
Accumulated Depreciation				$ 344,100.00
Accounts Payable				$      2,400.00
Salaries Payable				$      1,040.00
Unearned Revenue				$         900.00
Fernville, Capital				$   95,670.00
Fernville, Withdrawals			$     1,550.00
Service Revenue				$   19,400.00
Salaries Expense			$     4,340.00
Insurance Expense			$     2,600.00
Depreciation Expense			$     4,100.00
Advertising Expense			$         920.00
Supplies Expense			$         900.00
Total			$ 463,510.00	$ 463,510.00