Is all of this correct? Journal Entries 1000 Adjusting Entries and Closing Entri

Question

Is all of this correct?

Journal Entries

1000

Adjusting Entries and Closing Entries

Worksheet

Post Closing Trial Balance

These are the journal entries and the adjusting journal entries

Cash 4000    Common Stock 4000 Cash 5000    Notes Payable 5000 Rent Expense 900    Cash 900 Supplies 450    Accounts Payable 450 Equipment 7200    Cash 7200 Equipment 2850    Cash 1350    Accounts Payable 1500 Prepaid Advertising 375 Advertising Expense 125    Cash 500 Insurance Expense 225    Cash 225 Cash 2625    Service Revenue 2625 Cash 5125    Unearned Service Revenue 5125 Accounts Recievable 1500    Service Revenue 1500 Accounts Payable 600    Cash 600 Cash 1300    Accounts Recievable 1300 Dividends 1000    Cash

1000

Explanation / Answer

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Everything is correct except one adjustment entry of unearned revenue which should be $1025 (5125/5) instead of $1000 which have impact in Trial and Balance sheet as well. giving correct answer below:

Account Debit Credit Cash 4000    Common Stock 4000 Cash 5000    Notes Payable 5000 Rent Expense 900 Cash 900 Supplies 450 Accounts Payable 450 Equipment 7200 Cash 7200 Equipment 2850 Cash 1350 Accounts Payable 1500 Prepaid Advertising 375 Advertising Expense 125 Cash 500 Insurance Expense 225 Cash 225 Cash 2625    Service Revenue 2625 Cash 5125 Unearned Revenue 5125 Accounts Recievable 1500    Service Revenue 1500 Accounts Payable 600 Cash 600 Cash 1300 Accounts Recievable 1300 Dividends 1000 Cash 1000 Adjusting: A1 Interest Expense 42    Interest Payable 42 A2 Supplies Expense 250 Supplies 250 A3 Depreciation Expense 167    Accumulated Depreciation-Equipment 167 A3b Depreciation Expense 40    Accumulated Depreciation-Equipment 40 A4 Unearned Revenue 1025    Service Revenue 1025 A5 Accounts Recievable 330    Service Revenue 330 A6 Salaries and Wages Expense 2060    Salaries and Wages Payable 2060 A7 Utility Expense 150    Utilities Payable 150 A8 Income Tax Expense 167    Income Tax Payable 167 Closing: C1 Service Revenue 5480    Income Summary 5480 C2 Income Summary 4126    Salaries and Wages Expense 2060    Depreciation Expense 207    Insurance Expense 225    Utilities Expense 150    Income Tax Expense 167    Interest Expense 42    Supplies Expense 250    Rent Expense 900    Advertising Expense 125 C3 Income Summary 1354    Retained Earnings 1354 C4 Retained Earnings 1000    Dividends 1000

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