Activity 4.a

Activity 4.a - Using T-accounts to analyze Adjustments Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Employees earned $2,100 in salaries that will be paid next month. The Salarles Expense unadjusted balance as of December 31 is $6,900. Adjustment Type: Salaries Expense Salaries Payable - Customers were billed for $3.400 for work completed. The Service Revenue unadjusted balance as of December 31 is $6,300. Adjustment Type: Accounts Receivable Service Revenue Used prepaid insurance of $3,380. The Prepaid Insurance unadjusted balance as of December 31 is 57.700. Adjustment Type: Insurance Expense Prepaid Insurance