Bella's Beauty Salon's unadjusted trial balance for the current year follows:

Additional information:

a. An insurance policy examination showed $1,240 of expired insurance.

b. An inventory count showed $210 of unused shop supplies still available.

c. Depreciation expense on shop equipment, $350.

d. Depreciation expense on the building, $2,220.

e. A beautician is behind on space rental payments and $200 of accrued revenue was unrecorded at the time the trial balance was prepared.

f. $800 of the Unearned Rent account balance was earned by year-end.

g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.

h. Three months' property taxes, totalling $450, have accrued. This additional amount of property taxes expense has not been recorded. ?i. One month's interest on the note payable, $600, has accrued but is unrecorded.

Required: Based on the additional information, prepare the adjusting journal entries for Bella's Beauty Salon.

Answer rating: 100% (QA)

Journal Entries SNO Accounts Debit Credit a Insurance Expense 1240 Prepaid Insurance 1240 b Supplie... View the full answer