Question

The trial balance of Large Company, Inc., at the end of its annual accounting period is as follows:

LARGE COMPANY, INC. Trial Balance December 31, 2019
Cash.......................................................................	$ 4,000
Accounts Receivable………………………………..	400
Prepaid Insurance.................................................	1,200
Supplies ...............................................................	2,100
Equipment ............................................................	20,000
Accumulated Depreciation—Equipment..............		$ 2,000
Owner Capital ……………………………………….		19,000
Owner Withdrawals .............................................	2,000
Revenue.................................................................		33,000
Salaries Expense...................................................	18,300
Rent Expense .......................................................	6,000	______
Totals.....................................................................	$54,000	$54,000

Additional information:

1. Expired insurance, $400.
2. Unused supplies, per inventory, $800.
3. Estimated depreciation, $1,000.
4. Earned but unpaid salaries, $700.
5. Services completed for a client by year-end but the client has not been billed for those services, $500

Required: Prepare adjusting entries.

NO PDF or image please

Answer 1

Date	Accounts title	Debit	Credit
31-Dec-19	Insurance expense	$400
	Prepaid Insurance		$400
	(to record issurance expired)
31-Dec-19	Supplies expense	$1,300
	Supplies (2100 - 800)		$1,300
	(to record supplies used)
31-Dec-19	Depreciation Expense - Equipment	$1,000
	Accumulated Depreciation Equipment		$1,000
	(to record depreciation)
31-Dec-19	Salaries expense	$700
	Salaries Payable		$700
	(to record salaries accrued but not paid)
31-Dec-19	Accounts receivables	$500
	Revenue		$500
	(to record unrecorded revenue)