Question

The ledger of Tamarisk, Inc. on March 31, 2017, includes the following selected accounts before adjusting entries.

		Debit		Credit
Supplies		3,600
Prepaid Insurance		2,400
Equipment		33,000
Unearned Service Revenue				11,400

An analysis of the accounts shows the following.

1.		Insurance expires at the rate of $300 per month.
2.		Supplies on hand total $935.
3.		The equipment depreciates $220 per month.
4.		During March, services were performed for two-fifths of the unearned service revenue.

Prepare the adjusting entries for the month of March. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.

Answer 1

Number	Account Titles and Explanation	Debit	Credit
1	Insurance Expense A/c	300
	Prepaid Insurance A/c		300
	(Expires one month)
2	Supplies Expense A/c	2,665
	Supplies on Hand A/c		2,665
	(Adjusting entry for expense)
3	Depreciation Expense A/c	220
	Accumulated Depreciation A/c		220
	(Depreciation on Equipment)
4	Unearned Revenue A/c	4,560
	Revenue A/c		4,560
	(Revenue performed)

Suuplies expense balance found by 3600 - 935

Revenue found by 11400 x 2/5