The trial balance for Pioneer Advertising Agency shows the following: PIONEER AD
ID: 2346815 • Letter: T
Question
The trial balance for Pioneer Advertising Agency shows the following:PIONEER ADVERTISING AGENCY
Trial Balance
October 31, 2012
Debit Credit
Cash $15,266
Advertising Supplies 2,491
Prepaid Insurance 702
Office Equipment 6,200
Notes Payable $5,408
Accounts Payable 2,491
Unearned Revenue 1,378
C.R. Byrd, Capital 11,660
C.R. Byrd, Drawing 531
Service Revenue 9,313
Salaries Expense 4,094
Rent Expense 966
$30,250
$30,250
Assume the following adjustment data.
Advertising supplies on hand at October 31 total $515.
Expired insurance for the month is $117.
Depreciation for the month is $62.
Unearned revenue earned in October totals $689.
Services provided but not recorded at October 31 are $353.
Interest accrued at October 31 is $80.
Accrued salaries at October 31 are $1,528.
Instructions
Prepare the adjusting entries for the items above.
Date Account/Description Debit Credit
1. Oct.31
2. Oct.31
3. Oct.31
4. Oct.31
5. Oct.31
6. Oct.31
7. Oct.31
Explanation / Answer
Date Account/Description Debit Credit
1. Oct.31 Supplies on Hand $515
Advertising Supplies $515
_________________________________________________
2. Oct.31 Insurance Expense $117
Prepaid Insurance $117
_________________________________________________
3. Oct.31 Depreciation Expense $62
Office Equipment $62
_________________________________________________
4. Oct.31 Unearned Revenue $689
Service Revenue $689
_________________________________________________
5. Oct.31 Accrued Revenue $353
Service Revenue $353
_________________________________________________
6. Oct.31 Interest Expense $80
Accrued Interest $80
_________________________________________________
7. Oct.31 Salary Expense $1,528
Salaries Payable $1,528
_________________________________________________
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