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Swifty Corporation records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expens
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Answer #1
No. Date Accounts Titles & Explanation Debit Credit
(a) Apr-30 Supplies expenses                1,900
Supplies                                        1,900
(b) Apr-30 Service Revenue 3,200
Unearned Service Revenue                                   3,200

Explanation: For "a" 2700-800 = 1900.

For "b" Unearned service revenue is being credited as it will stand as a liability in the balance sheet till the time it is earned.

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