Question

The trial balance for Pioneer Advertising is shown below.

Wildhorse Advertising Trial Balance October 31, 2017
	Debit		Credit
Cash	$14,000
Supplies	2,500
Prepaid Insurance	600
Equipment	5,000
Notes Payable			$5,000
Accounts Payable			2,300
Unearned Service Revenue			1,300
Owner’s Capital			7,200
Owner’s Drawings	400
Service Revenue			10,900
Salaries and Wages Expense	3,400
Rent Expense	800
	$26,700		$26,700

Assume the following adjustment data.

1.		Supplies on hand at October 31 total $300.
2.		Expired insurance for the month is $200.
3.		Depreciation for the month is $90.
4.		Services related to unearned service revenue in October worth $600 were performed.
5.		Services performed but not recorded at October 31 are $400.
6.		Interest accrued at October 31 is $80.
7.		Accrued salaries at October 31 are $1,500.

Prepare the adjusting entries for the items above.

Answer 1

Answer -

Adjusting Journal Entries

No.	Date	General Journal	Debit ($)	Credit ($)
1.	Oct. 31	Supplies expense [$2500 - $300] Supplies	2200 -	- 2200
2.	Oct. 31	Insurance expense Prepaid insurance	200 -	- 200
3.	Oct. 31	Depreciation expense Accumulated depreciation--Equipment	90 -	- 90
4.	Oct. 31	Unearned service revenue Service revenue	600 -	- 600
5.	Oct. 31	Account receivable Service revenue	400 -	- 400
6.	Oct. 31	Interest expense Interest payable	80 -	- 80
7.	Oct. 31	Salaries expense Salaries payable	1500 -	- 1500