Question

1. Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when Unrecorded interest accrued on savings bonds is $488. Property taxes incurred but not paid or recorded amount to $976. 3. Unearned service revenue of $4,880 was collected in advance. By year end $854 was still unearned. Prepaid insurance had a $915 debit balance prior to adjustment. By year end, 60 percent was still unexpired. 5. Salaries incurred by year end but not yet paid or recorded amounted to $780. 2. 4. No. Account Titles and Explanation Debit Credit 1. Interest Payable 488 ......... Interest Expense 488 > 2. Property Tax Expense 976 Property Taxes Payable 976 3. Unearned Service Revenue 854 Service Revenue 854 X 4. Insurance Expense 366 Prepaid Insurance 366 5. Salaries and Wages Expense 780 < Salaries and Wages Payable 780

Answer 1

Entries

No	General Journal	Debit	Credit
1	Interest receivable	488
	Interest revenue		488
2	Property tax expense	976
	Property tax payable		976
3	Unearned service revenue	4026
	Service revenue (4880-854)		4026
4	Insurance expense (915*40%)	366
	Prepaid insurance		366
5	Salaries and wages expense	780
	Salaries and wages payable		780