Question

Adjusting Entries

Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2019, the end of the current year, the accountant for Good Note prepared the following trial balances:

Good Note Company
Trial Balance
November 30, 2019
	Unadjusted				Adjusted
	Debit Balances		Credit Balances		Debit Balances		Credit Balances
Cash	29,160				29,160
Accounts Receivable	83,530				83,530
Supplies	8,670				2,690
Prepaid Insurance	11,030				2,100
Equipment	442,020				442,020
Accumulated Depreciation—Equipment			72,100				81,470
Automobiles	87,470				87,470
Accumulated Depreciation—Automobiles			41,770				43,860
Accounts Payable			18,910				19,670
Salaries Payable			—				5,910
Unearned Service Fees			13,790				4,380
Robin Stahl, Capital			443,000				443,000
Robin Stahl, Drawing	57,130				57,130
Service Fees Earned			588,070				597,480
Salary Expense	394,010				399,920
Rent Expense	40,980				40,980
Supplies Expense	—				5,980
Depreciation Expense—Equipment	—				9,370
Depreciation Expense—Automobiles	—				2,090
Utilities Expense	9,850				10,610
Taxes Expense	6,300				6,300
Insurance Expense	—				8,930
Miscellaneous Expense	7,490				7,490
	1,177,640		1,177,640		1,195,770		1,195,770

Required:

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

Answer 1

Supplies Expense	5980
Supplies		5980
Insurance Expense	8930
Prepaid Insurance		8930
Depreciation Expense—Equipment	9370
Depreciation Expense—Automobiles	2090
Accumulated Depreciation—Equipment		9370
Accumulated Depreciation—Automobiles		2090
Utilities Expense	760
Accounts Payable		760
Salary Expense	5910
Salaries Payable		5910
Unearned Service Fees	9410
Service Fees Earned		9410