Question

The trial balances before and after adjustment for Crane Company at the end of its fiscal year are presented below. After Adjustment Dr. Cr. $10,000 9,500 700 2,700 12,400 CRANE COMPANY Trial Balance August 31, 2020 Before Adjustment Dr. Cr. Cash $10,000 Accounts Receivable 8,900 Supplies 2,400 Prepaid Insurance 3,900 Equipment 12,400 Accumulated Depreciation-Equipment $3,400 Accounts Payable 5,800 Salaries and Wages Payable 0 Unearned Rent Revenue 1.400 Owner's Capital 13,700 Service Revenue 34,000 Rent Revenue 11,100 Salaries and Wages Expense 17,000 Supplies Expense 0 Rent Expense 14,800 Insurance Expense 0 Depreciation Expense 0 $69,400 $69,400 $ 4,500 5,800 1,400 800 13,700 34,600 11,700 18,400 1,700 14,800 1,200 1,100 $72,500 $72,500

Answer 1

Adjusting entry

Date	General Journal	Debit	Credit
Aug 31	Account receivable	600
	Service revenue		600
	(To record service revenue performed)
Aug 31	Supplies expense	1700
	Supplies		1700
	(To record supplies used)
Aug 31	Insurance expense	1200
	Prepaid insurance		1200
	(To record insurance expired)
Aug 31	Depreciation expense	1100
	Accumulated depreciation-equipment		1100
	(To record Dep)
Aug 31	Salaries and wages expense	1400
	Salaries and wages payable		1400
	(To record accrued salaries and wages payable)
Aug 31	Unearned rent revenue	600
	Rent revenue		600
	(To record rent earned)