Question

Adjusting Entries

Good Note Company specializes in the repair of music equipment and is owned and operated by Secilia Timken. On November 30, 2018, the end of the current year, the accountant for Good Note Company prepared the following trial balances:

Good Note Company
Trial Balance
November 30, 2018
	Unadjusted				Adjusted
	Debit Balances		Credit Balances		Debit Balances		Credit Balances
Cash	36,470				36,470
Accounts Receivable	104,480				104,480
Supplies	10,840				3,360
Prepaid Insurance	13,800				2,620
Equipment	395,790				395,790
Accumulated Depreciation—Equipment			90,190				101,910
Automobiles	109,410				109,410
Accumulated Depreciation—Automobiles			52,240				54,850
Accounts Payable			23,660				24,610
Salaries Payable			—				7,390
Unearned Service Fees			17,250				5,480
Common Stock			125,000				125,000
Retained Earnings			272,000				272,000
Dividends	71,460				71,460
Service Fees Earned			735,580				747,350
Salary Expense	492,840				500,230
Rent Expense	51,260				51,260
Supplies Expense	—				7,480
Depreciation Expense—Equipment	—				11,720
Depreciation Expense—Automobiles	—				2,610
Utilities Expense	12,320				13,270
Taxes Expense	7,890				7,890
Insurance Expense	—				11,180
Miscellaneous Expense	9,360				9,360
	1,315,920		1,315,920		1,338,590		1,338,590

Required:

Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry.

2018 Nov.30
30
30
30
30
30
30

Answer 1

Ans:

Journal Entries

Date	Account Name	Debit ($)	Credit ($)
Nov 30, 2018	Supplies expense	$7480
	supplies		$7480
Nov 30, 2018	Insurance exopense	$11180
	Prepaid Insurance		$11180
Nov 30, 2018	Depreciation expense-Equipment	$11720
	Acumulated Depreciation-Equipment		$11720
Nov 30, 2018	Depreciation expense-Automobiles	$2610
	Acumulated Depreciation-Automobiles		$2610
Nov 30, 2018	Sevice fees earned	$11770
	Unearned service fees		$11770
Nov 30, 2018	Tax expense	$950
	Accounts Payable		$950
Nov 30, 2018	Salaries Expense	$7390
	Salary Payable		$7390