Question

Credit Cash Debit $6,850 7,000 1,982 3,180 15,000 Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 4,245 5,200 21,982 8,300 4,000 1,715 $39,727 $39,727 In addition to those accounts listed on the trial balance, the chart of accounts for Richard also contains the following accounts: Accumulated Depreciation Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. 2. 3. 4. Supplies on hand at June 30 total $720. A utility bill for $250 has not been recorded and will not be paid until next month. The insurance policy is for a year. Services were performed for $4,330 of unearned service revenue by the end of the month. Salaries of $1,450 are accrued at June 30. The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months. Invoices representing $4,270 of services performed by Richard during the month have not been recorded as of June 30. 5. 6. 7.

Answer 1

Solution:- S.No. Particulars Debit($) Credit($) 1. Supplies Expense A/c ($1,982 - $720)    Dr. $1,262 To Supplies A/c   $1,262 (Being Supplies expenses recorded) 2. Utilities Expense A/c Dr. $250 To Accounts payable A/c $250 (Being accrued utilities Expenses recorded) 3. Insurance expense A/c ($3,180 / 12 months) Dr. $265 To Prepaid insurance A/c $265 (Being Insurance Expenses recorded) 4. Unearned Service Revenue A/c Dr. $4,330 To Service Revenue A/c $4,330 (Being Unearned Service revenue recorded) 5. Salaries and Wages Expense A/c Dr. $1,450 To Salaries and Wages payable A/c $1,450 (Being accrued Salaries & Wages expenses recorded) 6. Depreciation Expense A/c Dr. $250 To Accumulated Depreciation A/c $250 (Being depreciation expenses recorded) 7. Accounts Receivable A/c Dr. $4,270 To Service Revenue A/c $4,270 (Being Service revenue recorded)