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, 2017.

1. Prepaid insurance totalling $435 has expired.

2. Supplies of $425 have been used.

3. Annual depreciation on equipment is $1,240.

4. Unearned revenue of $320 has now been earned.

5. Salaries of $835 are unpaid.

6. Utility expenses for 2017 of $230 are unrecorded and unpaid.

7. Services provided but not collected in cash or recorded total $935.

8. Interest of $85 on a note payable has accrued.

Instructions

For each adjustment, prepare a basic analysis, a debit-credit analysis, and the adjusting journal entry. 

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Basic Analysis The asset Prepaid Insurance is decreased by $435. The expense Insurance Expense Debit-Credit Analysis is increased by $435. Debits increase expenses: debit Insurance Expense $435. Credits decrease assets: credit Prepaid Insurance $435. Adjusting JournalDec.31 Insurance Expense 435 Entry Prepaid Insurance 435 To record insurance expired.