Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation%u2014 Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable. The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4 (page 168). Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500. 2. Expired insurance for the month is $100. 3. Depreciation for the month is $75. 4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed. 5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280. 6. Interest expense accrued at October 31 is $70. 7. Accrued salaries at October 31 are $1,400.

Question

Ross Benitez

Business

31 January, 15:57

Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation%u2014 Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable. The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4 (page 168). Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500. 2. Expired insurance for the month is $100. 3. Depreciation for the month is $75. 4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed. 5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280. 6. Interest expense accrued at October 31 is $70. 7. Accrued salaries at October 31 are $1,400.

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Aedan Soto · Answer 1

The adjusting entries are shown below:

1. Supplies A/c Dr $500

To Supplies expenses A/c $500

(Being the supplies is recorded)

2. Insurance A/c Dr $100

To Prepaid insurance A/c $100

(Being the expired insurance is recorded)

3. Depreciation Expense A/c Dr $75

To Accumulated Depreciation A/c $75

(Being depreciation expense is recorded)

4. Prepaid service revenue A/c Dr $800

To Service revenue A/c $800

(Being the unearned revenue is recorded)

5. Account receivable A/c Dr $280

To Service revenue A/c $280

(Being the service performed is recorded)

6. Interest expense A/c Dr $70

To Interest payable A/c $70

(Being the interest expense accrued is recorded)

7. Salaries expense A/c Dr $1,400

To Accrued salary expense A/c $1,400

(Being the accrued salaries are recorded)