Question

The trial balance for Pioneer Advertising is shown below. Pharoah Advertising Trial Balance October 31, 2017 Debit Credit Cash $16,000 Supplies 2,800 Prepaid Insurance 500 Equipment 4,900 Notes Payable $4,800 Accounts Payable 3,000 Unearned Service Revenue 1,100 Owner’s Capital 10,300 Owner’s Drawings 600 Service Revenue 10,600 Salaries and Wages Expense 4,100 Rent Expense 900 $29,800 $29,800 Assume the following adjustment data. 1. Supplies on hand at October 31 total $600. 2. Expired insurance for the month is $300. 3. Depreciation for the month is $80. 4. Services related to unearned service revenue in October worth $400 were performed. 5. Services performed but not recorded at October 31 are $200. 6. Interest accrued at October 31 is $70. 7. Accrued salaries at October 31 are $1,300. Prepare the adjusting entries for the items above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Oct. 31 2. Oct. 31 3. Oct. 31 4. Oct. 31 5. Oct. 31 6. Oct. 31 7. Oct. 31

Answer 1

Soluton:

Adjusting Journal Entries
Date	Particulars	Debit	Credit
(a)	Supplies expense Dr ($2800- $600)	$2,200
	To Supplies		$2,200
(b)	Insurance expense Dr	$300
	To Prepaid Insurance		$300
(c )	Depreciation expense Dr	$80
	To Accumulated Depreciation		$80
(d)	Unearned Service Revenue Dr	$400
	To Service revenue		$400
(e)	Accounts Receivable	$200
	To Service revenue		$200
(f)	Interest expense Dr	$70
	To Interest Payable		$70
(G)	Salaries and wages expense Dr	$1,300
	To Salaries and wages payable		$1,300