Question

Exercise 3-09

The trial balance for Pioneer Advertising is shown below.

Pioneer Advertising Trial Balance October 31, 2017
	Debit		Credit
Cash	$15,200
Supplies	2,500
Prepaid Insurance	600
Equipment	5,000
Notes Payable			$5,000
Accounts Payable			2,500
Unearned Service Revenue			1,200
Owner’s Capital			10,000
Owner’s Drawings	500
Service Revenue			10,000
Salaries and Wages Expense	4,000
Rent Expense	900
	$28,700		$28,700

Assume the following adjustment data.

1.		Supplies on hand at October 31 total $500.
2.		Expired insurance for the month is $120.
3.		Depreciation for the month is $50.
4.		Services related to unearned service revenue in October worth $600 were performed.
5.		Services performed but not recorded at October 31 are $360.
6.		Interest accrued at October 31 is $95.
7.		Accrued salaries at October 31 are $1,625.

Prepare the adjusting entries for the items above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Oct. 31
2.	Oct. 31
3.	Oct. 31
4.	Oct. 31
5.	Oct. 31
6.	Oct. 31
7.	Oct. 31

Answer 1

Answer:

S.No	Particulars	Debit	Credit
1	Supplies Expense a/c                                                                                             Dr	$2,000
	To Supplies (2500-500)		$2,000
	[Being Supplies used in the business]
2	Insurance Expense a/c                                                                                           Dr	$120
	To Prepaid Insurance a/c		$120
	[Being Insurance expired for the month]
3	Depreciation a/c                                                                                                       Dr	$50
	To Equipment a/c		$50
	[Being Depreciation charged on Equipment]
4	Unearned Service Revenue a/c                                                                          Dr	$600
	Service Revenue a/c		$600
	Being services related to unearned service revenue performed]
5	Cash a/c                                                                                                                        Dr	$360
	Service Revenue a/c		$360
	[Being Services unrecorded, recorded in the books]
6	Interest Expense a/c                                                                                              Dr	$95
	To Interest Payable a/c		$95
	[Being Interest accrued for the month]
7	Salaries & wages Expense a/c                                                                            Dr	$1,625
	To Salaries & Expense Payable a/c		$1,625
	[Being Salaries accrued for the month]