Tobias Cleaning and Maintenance, owned by Triana Tobias, provides cleaning services to hotels, motels, and hospitals. On January 31, 20X1, the firm’s worksheet showed the following adjustment data. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are also given.

INSTRUCTIONS
1. Record the adjusting entries in the general journal, page 3.
2. Record the closing entries in the general journal, page 4. Use account numbers provided in Mini-Practice Set 1 for any account number not given.
Analyze: 

What effect did the adjusting entry for expired insurance have on the Insurance Expense account?

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ADJUSTMENTS a. Supplies used, $4,290 b. Expired insurance, $2,220 c. Depreciation on machinery, $1,680 REVENUE AND EXPENSE ACCOUNTS 401 Fees Income 511 Depreciation Expense-Machinery 514 Insurance Expense 517 Rent Expense 520 Salaries Expense 523 Supplies Expense 526 Telephone Expense $49,200 Cr. 1,680 Dr. 2.220 Dr. 4,500 Dr. 24,000 Dr. 4,290 Dr. 315 Dr.