Question

Adjusting Entries

Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2019, the end of the current year, the accountant for Good Note prepared the following trial balances:

Good Note Company
Trial Balance
November 30, 2019
	Unadjusted				Adjusted
	Debit Balances		Credit Balances		Debit Balances		Credit Balances
Cash	30,970				30,970
Accounts Receivable	88,710				88,710
Supplies	9,210				2,860
Prepaid Insurance	11,720				2,230
Equipment	420,200				420,200
Accumulated Depreciation—Equipment			76,580				86,540
Automobiles	92,900				92,900
Accumulated Depreciation—Automobiles			44,360				46,580
Accounts Payable			20,090				20,890
Salaries Payable			—				6,280
Unearned Service Fees			14,650				5,090
Robin Stahl, Capital			448,000				448,000
Robin Stahl, Drawing	60,680				60,680
Service Fees Earned			597,790				607,350
Salary Expense	418,450				424,730
Rent Expense	43,520				43,520
Supplies Expense	—				6,350
Depreciation Expense—Equipment	—				9,960
Depreciation Expense—Automobiles	—				2,220
Utilities Expense	10,460				11,260
Taxes Expense	6,700				6,700
Insurance Expense	—				9,490
Miscellaneous Expense	7,950				7,950
	1,201,470		1,201,470		1,220,730		1,220,730

Required:

Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry.

Answer 1

The adjusting entries are provided as below:

Date	Account Titles	Debit	Credit
November 30, 2019	Supplies Expense (9,210 - 2,860)	$5,350
	Supplies		$5,350
	(To record supplies used)
November 30, 2019	Insurance Expense (11,720 - 2,230)	$9,490
	Prepaid Insurance		$9,490
	(To record insurance expired)
November 30, 2019	Depreciation Expense-Equipment (86,540 - 76,580)	$9,960
	Accumulated Depreciation-Equipment		$9,960
	(To record depreciation expense for equipment)
November 30, 2019	Depreciation Expense-Automobiles (46,580 - 44,360)	$2,220
	Accumulated Depreciation-Automobiles		$2,220
	(To record depreciation expense for automobiles)
November 30, 2019	Utilities Expense	$800
	Accounts Payable		$800
	(To record accrued utilities)
November 30, 2019	Salary Expense	$6,280
	Salaries Payable		$6,280
	(To record accrued salaries)
November 30, 2019	Unearned Service Fees (14,650 - 5,090)	$9,560
	Service Fees Earned		$9,560
	(To record service fees earned)