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	41,590				41,590
Accounts Receivable	119,150				119,150
Supplies	12,360				3,830
Prepaid Insurance	15,740				2,990
Equipment	557,290				557,290
Accumulated Depreciation—Equipment			102,850				116,220
Automobiles	124,770				124,770
Accumulated Depreciation—Automobiles			59,580				62,560
Accounts Payable			26,980				28,060
Salaries Payable			—				8,430
Unearned Service Fees			19,670				6,450
Robin Stahl, Capital			571,000				571,000
Robin Stahl, Drawing	81,490				81,490
Service Fees Earned			826,510				839,730
Salary Expense	562,030				570,460
Rent Expense	58,450				58,450
Supplies Expense	—				8,530
Depreciation Expense—Equipment	—				13,370
Depreciation Expense—Automobiles	—				2,980
Utilities Expense	14,050				15,130
Taxes Expense	8,990				8,990
Insurance Expense	—				12,750
Miscellaneous Expense	10,680				10,680
	1,606,590		1,606,590		1,632,450		1,632,450

Required:

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

2019 Nov.30
30
30
30
30
30
30

Answer 1

Adjusting entry :

Date	accounts & explanation	debit	credit
	Supplies expense	8530
	Supplies		8530
	Insurance expense	12750
	Prepaid insurance		12750
	Depreciation expense-Equipment	13370
	Accumlated depreciation-equipment		13370
	Depreciation Expense—Automobiles	2980
	Accumlated depreciation-Automobiles		2980
	Salary expense	8430
	Salary payable		8430
	Unearned fees	13220
	Service fees earned		13220
	Utilites expense	1080
	Account payable		1080