The trial balance for Pioneer Advertising Agency shows the following: PIONEER AD

Question

The trial balance for Pioneer Advertising Agency shows the following: PIONEER ADVERTISING AGENCY Trial Balance October 31, 2010 Debit Credit Cash $15,251 Advertising Supplies 2,530 Prepaid Insurance 708 Office Equipment 7,900 Notes Payable $4,753 Accounts Payable 2,530 Unearned Revenue 996 C.R. Byrd, Capital 11,590 C.R. Byrd, Drawing 517 Service Revenue 11,577 Salaries Expense 3,723 Rent Expense 817 $31,446 $31,446 Assume the following adjustment data. Advertising supplies on hand at October 31 total $488. Expired insurance for the month is $118. Depreciation for the month is $79. Unearned revenue earned in October totals $498. Services provided but not recorded at October 31 are $256. Interest accrued at October 31 is $85. Accrued salaries at October 31 are $1,414. Instructions Prepare the adjusting entries for the items above.

Explanation / Answer

Advertising supplies on hand at October 31 total $489. 2,530 - 488 = 2,042 adjustment Dr Advertising Supplies Expense 2,042 Cr Advertising Supplies 2,042 Expired insurance for the month is $141. Dr Insurance Expense 141 Cr Prepaid Insurance 141 Depreciation for the month is $45. Dr Depreciation Expense--Office Equipment 45 Cr Accumulated Depreciation--Office Equipment 45 Unearned revenue earned in October totals $408. Dr Unearned Revenue 408 Cr Service Revenue 408 Services provided but not recorded at October 31 are $250. Dr Accounts Receivable 250 Cr Service Revenue 250 Interest accrued at October 31 is $79. Dr Interest Expense 79 Cr Interest Payable 79 Accrued salaries at October 31 are $1,664. Dr Salaries Expense 1,664 Cr Salaries Payable 1,664

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