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Adjusting Entries Date Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Accounts Title Insurance Expense Prepaid Insurance Supplies Expenses Supplies ($2,300 - $500) Depreciation Expense Accumulated Depreciation Salaries Expense Salaries Payable Rent Expense Prepaid Rent ($5,000/2 months) Unearned Revenue Service Revenue Debit $1,000 $1,800 $2,000 $300 $2,500 $2,000 Credit $1,000 $1,800 $2,000 $300 $2,500 $2,000

Adjusting Entries Date Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Accounts Title Insurance Expense Prepaid Insurance Supplies Expenses Supplies ($2,300 - $500) Depreciation Expense Accumulated Depreciation Salaries Expense Salaries Payable Rent Expense Prepaid Rent ($5,000/2 months) Unearned Revenue Service Revenue Debit $1,000 $1,800 $2,000 $300 $2,500 $2,000 Credit $1,000 $1,800 $2,000 $300 $2,500 $2,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Post the following journal entries into T-accounts.

**Adjusting Entries** | Date | Accounts Title | Debit | Credit | |--------|-----------------------------|---------|---------| | Feb 28 | Insurance Expense | $1,000 | | | | Prepaid Insurance | | $1,000 | | | | | | | Feb 28 | Supplies Expenses | $1,800 | | | | Supplies | | $1,800 | | | ($2,300 - $500) | | | | | | | | | Feb 28 | Depreciation Expense | $2,000 | | | | Accumulated Depreciation | | $2,000 | | | | | | | Feb 28 | Salaries Expense | $300 | | | | Salaries Payable | | $300 | | | | | | | Feb 28 | Rent Expense | $2,500 | | | | Prepaid Rent | | $2,500 | | | ($5,000/2 months) | | | | | | | | | Feb 28 | Unearned Revenue | $2,000 | | | | Service Revenue | | $2,000 | **Explanation**: - **Insurance Expense and Prepaid Insurance:** An adjustment is made to record the insurance expense incurred and reduce the prepaid insurance balance. - **Supplies Expenses and Supplies:** Reflects the usage of supplies, with a calculation shown as ($2,300 - $500). - **Depreciation Expense and Accumulated Depreciation:** Records depreciation expense for the period, impacting accumulated depreciation. - **Salaries Expense and Salaries Payable:** Salaries accrued and owed are recorded as an expense and a payable. - **Rent Expense and Prepaid Rent:** Adjusts for rent expense incurred during the period, based on a prorated calculation ($5,000/2 months). - **Unearned Revenue and Service Revenue:** The revenue earned from a previously unearned revenue item is recognized. These entries are crucial for accurately reporting financial statements at the end of an accounting period, ensuring that expenses and revenues are recorded in the correct
Transcribed Image Text:**Adjusting Entries** | Date | Accounts Title | Debit | Credit | |--------|-----------------------------|---------|---------| | Feb 28 | Insurance Expense | $1,000 | | | | Prepaid Insurance | | $1,000 | | | | | | | Feb 28 | Supplies Expenses | $1,800 | | | | Supplies | | $1,800 | | | ($2,300 - $500) | | | | | | | | | Feb 28 | Depreciation Expense | $2,000 | | | | Accumulated Depreciation | | $2,000 | | | | | | | Feb 28 | Salaries Expense | $300 | | | | Salaries Payable | | $300 | | | | | | | Feb 28 | Rent Expense | $2,500 | | | | Prepaid Rent | | $2,500 | | | ($5,000/2 months) | | | | | | | | | Feb 28 | Unearned Revenue | $2,000 | | | | Service Revenue | | $2,000 | **Explanation**: - **Insurance Expense and Prepaid Insurance:** An adjustment is made to record the insurance expense incurred and reduce the prepaid insurance balance. - **Supplies Expenses and Supplies:** Reflects the usage of supplies, with a calculation shown as ($2,300 - $500). - **Depreciation Expense and Accumulated Depreciation:** Records depreciation expense for the period, impacting accumulated depreciation. - **Salaries Expense and Salaries Payable:** Salaries accrued and owed are recorded as an expense and a payable. - **Rent Expense and Prepaid Rent:** Adjusts for rent expense incurred during the period, based on a prorated calculation ($5,000/2 months). - **Unearned Revenue and Service Revenue:** The revenue earned from a previously unearned revenue item is recognized. These entries are crucial for accurately reporting financial statements at the end of an accounting period, ensuring that expenses and revenues are recorded in the correct
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