Question

MJ Sandblasting is in its second year of operations. At the end of April 2018, it had the following adjustments.

April 30 - Recognized $300 of prepaid insurance expense for the month

April 30 - Depreciation on equipment for the month was $200

April 30 - A count of office supplies showed that $650 worth of supplies had been used

April 30 - Accrued interest on bank loan was $30

April 30 - Outstanding work for a client worth $800 was completed during the month; the client had paid for the work in March

Prepare the journal entries for the adjustments.

Date	Account Title and Explanation	PR	Debit	Credit

Answer 1

Adjusting entries

Date	account and explanation	PR	Debit	credit
Apr 30	Insurance expense		300
	Prepaid insurance			300
	(To record insurance expense)
Apr 30	Depreciation expense		200
	Accumulated depreciation-equipment			200
	(To record dep)
Apr 30	Supplies expense		650
	Supplies			650
	(To record supplies used)
Apr 30	Interest expense		30
	Interest payable			30
	(To record accrued interest)
Apr 30	Unearned revenue		800
	Revenue earned			800
	(To record revenue)