Havanese Services Company records adjusting entries on an annual basis. The following information is available to be used in recording adjusting entries for the year ended December 31, 2014.
1. Prepaid insurance totaling $350 has expired.
2. Supplies of $300 have been used.
3. Annual depreciation on equipment is $1,140.
4. Unearned service revenue of $260 has been earned.
5. Salaries of $800 are unpaid.
6. Utility expenses for 2014 of $225 are unrecorded and unpaid.
7. Services provided but not collected in cash or recorded total $1,000.
8. Interest of $125 on a note payable has accrued.
Instructions
For each adjustment, prepare a basic analysis, a debit/credit analysis, and the adjusting journal entry. Use the following format, in which the first one has been done for you as an example:
Adjustment 1:

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Basic Analysis The asset Prepaid Insurance is decreased by $350. The expense Insurance Expense is increased by $350. Debits increase expenses: debit Insurance Expense $350. Credits decrease assets: credit Prepaid Insurance $350. Dec. 31 Debit/Credit Analysis Adjusting Journal Entry Insurance Expense 350 Prepaid Insurance 350 To record insurance expired.