The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4. In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data.
1. Advertising supplies on hand at October 31 total $500.
2. Expired insurance for the month is $100.
3. Depreciation for the month is $50.
4. As of October 31, $800 of the previously recorded unearned revenue had been earned.
5. Services provided but unbilled (and no receivable has been recorded) at October 31 are $200.
6. Interest expense accrued at October 31 is $70.
7. Accrued salaries at October 31 are $1,400.
Instructions
Prepare the adjusting entries for the items above.
Illustration4-4

Transcribed Image Text:

SIERRA CORPORATION Trial Balance October 31, 2010 8 Debit $15,200 2,500 Credit Advertising Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Uncarned Service Revenue Common Stock Retained Earnings 5,000 5,000 2,500 1,200 10,000 Service Revenuc Salaries Expense Rent Expense 10,000 4,000 $28,700 $28,700