Question

XYZ Computer Services is closing out their month of January 2020. On the worksheet, you can see their trial balances. They have determined the following adjustments need to be made

1. There is depreciation expense for the equipment they own in the amount of $150 for the month
2. There will be $1,200 in salaries paid in February for days worked in January
3. $200 insurance should be allocated to January
4. Finished programming project that the customer had previously paid for in the amount of $2,000
5. Inventory of supply closet shows that $1,000 remains

what would go on the adjustments, adjusted trial balance, income statement, and balance sheet as credit and debit

THIS IS ACCOUNTING

Answer 1

		Adjustment entries
		Account titles and explanation	Debit	Credit	Account nature
	1	Depreciation expense	150		Income statement - Debit - expense
		Accumulated depreciation		150	Balance sheet - credit
	2	Salaries expense	1200		Income statement - Debit - expense
		Salaries payable		1200	Balance sheet - credit liabilities
	3	Insurance expense	200		Income statement - Debit - expense
		prepaid insurance		200	Balance sheet - credit - assets
	4	Unearned revenue	2000		Balance sheet - debit - liabilities
		Sales		2000	Income statement - credit - income
	5	Supplies	1000		Balance sheet - debit - assets
		Supplies expense		1000	Income statement - credit - expense