Question

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	29,210				29,210
Accounts Receivable	83,690				83,690
Supplies	8,680				2,690
Prepaid Insurance	11,050				2,100
Equipment	428,380				428,380
Accumulated Depreciation—Equipment			72,240				81,630
Automobiles	87,640				87,640
Accumulated Depreciation—Automobiles			41,850				43,940
Accounts Payable			18,950				19,710
Salaries Payable			—				5,920
Unearned Service Fees			13,820				4,530
Robin Stahl, Capital			438,000				438,000
Robin Stahl, Drawing	57,240				57,240
Service Fees Earned			580,550				589,840
Salary Expense	394,770				400,690
Rent Expense	41,060				41,060
Supplies Expense	—				5,990
Depreciation Expense—Equipment	—				9,390
Depreciation Expense—Automobiles	—				2,090
Utilities Expense	9,870				10,630
Taxes Expense	6,320				6,320
Insurance Expense	—				8,950
Miscellaneous Expense	7,500				7,500
	1,165,410		1,165,410		1,183,570		1,183,570

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

1. Entry recording supplies utilised during the year:

Supplies Expense A/c	Dr	5990
Supplies A/c	Cr		5990

2. Entry for transferring expense from prepaid insurance to insurance expense:

Insurance Expense	Dr	8950
Prepaid Insurance	Cr		8950

3. Entry for recording depreciation expense for the year on equipments:

Depreciation Expense—Equipment	Dr	9390
Accumulated Depreciation—Equipment	Cr		9390

4. Entry for recording depreciation expense for the year on Automobiles

Depreciation Expense—Automobiles	Dr	2090
Accumulated Depreciation—Automobiles	Cr		2090

5. Entry for making provision for utilies expense:

Utilities Expense	Dr	760
Accounts Payable	Cr		760

6. Entry for making provision of salary payable:

Salary Expense	Dr	5920
Salaries Payable	Cr		5920

7. Entry for transferrin revenue from unearned service fee to service fee earned:

Unearned Service Fee	Dr	9290
Service Fee earned	Cr		9290