Question

The adjustments columns of the worksheet for Becker Company are shown below:

	Adjustments
Account Titles	Debit	Credit
Accounts Receivable	1,100
Prepaid Insurance		300
Accumulated Depreciation—Equipment		900
Salaries and Wages Payable		500
Service Revenue		1,100
Salaries and Wages Expense	500
Insurance Expense	300
Depreciation Expense	900
Total	2,800	2,800

a. Prepare the adjusting entries.

b. Indicate the financial statement column (debit or credit) to which each account balance should be extended.

Answer 1

Adjusting entries

No	General Journal	Debit	Credit
1	Account receivable	1100
	Service revenue		1100
2	Insurance expense	300
	Prepaid insurance		300
3	Salaries and wages expense	500
	Salaries and wages payable		500
4	Depreciation expense	900
	Accumulated depreciation-equipment		900

b) For which each account balance should be extended

Account receivable	Debit
Prepaid insurance	Debit
Accumulated Depreciation—Equipment	Credit
Salaries and wages payable	Credit
Service revenue	Credit
Salaries and wages expense	Debit
Insurance expense	Debit
Depreciation expense	Debit