Assume the following adjustment data and prepare the adjusting entries.
Transcribed Image Text:2.
2.
Trial Balance
October 31, 2017
Debit
Credit
Cash
Supplies
2,400
Prepaid Insurance
Equipment
000
Notes Payable
Accounts Payable
Unearned Service Revenue
000'
Owner's Capital
Owner's Drawings
009
Service Revenue
Salaries and Wages Expense
000
Rent Expense
00,
006
0060
Assume the following adjustment data.
1.
Supplies on hand at October 31 total $600.
Expired insurance for the month is $100.
3.
Depreciation for the month is $90.
4.
Services related to unearned service revenue in October worth $800 were performed.
5.
Services performed but not recorded at October 31 are $200.
6.
Interest accrued at October 31 is $80.
Accrued salaries at October 31 are $1,300.
Prepare the adjusting entries for the items above. (Credit account titles are automatically indented whe
amount is entered. Do not indent manually.)
Debit
No. Date Account Titles and Explanation
Oct.
1800
Supplies Expense
1.
31.
Supplies
Oct.
31
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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