Question

View Policies Current Attempt in Progress The ledger of Kingbird, Inc. on March 31, 2020, includes the following selected accounts before adjusting entries. Debit Credit Prepaid Insurance Supplies Equipment Unearned Service Revenue 2,800 2,300 33,600 8,600 An analysis of the accounts shows the following. 1. 2. 3 Insurance expires at the rate of $200 per month. Supplies on hand total $1,200. The equipment depreciates $300 per month. During March, services were performed for two-fifths of the unearned service revenue. Prepare the adjusting entries for the month of March. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Solution

No	Date	Accounts title and explanation	Debit	Credit
1	31-Mar	Insurance expense	$         200
		Prepaid insurance		$       200
2	31-Mar	Supplies expense	$     1,200
		Supplies		$    1,200
3	31-Mar	Depreciation expense	$         300
		Accumulated depreciation		$       300
4	31-Mar	Unearned revenue	$     3,440
		Service revenue		$    3,440