The accounting records of Travel Time, Inc., include the following unadjusted balances at November 30: Accounts Receivable,
Question:
The accounting records of Travel Time, Inc., include the following unadjusted balances at November 30: Accounts Receivable, $900; Supplies, $650; Prepaid Insurance, $2,000; Accumulated Depreciation, Equipment, $2,800; Salaries Payable, $0; Unearned Service Revenue, $1,500; Service Revenue, $6,200; Depreciation Expense, Equipment, $525; Salaries Expense, $1,600; Insurance Expense, $400; and Supplies Expense, $0.
The following data pertain to the November 30 adjusting entries:
a. Service revenue accrued, $1,800
b. Unearned service revenue that has been earned, $850
c. Supplies on hand, $175
d. Salaries owed to employees, $650
e. Depreciation of equipment, $175
f. Prepaid insurance expired, $200
Requirement
1. Record the adjustments in the general journal, then post them to T-accounts, labeling each adjustment by letter.
2. Calculate each account’s adjusted balance.
Step by Step Answer: