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Exercise 3-9 The trial balance for Pioneer Advertising Agency shows the followin

ID: 2598753 • Letter: E

Question

Exercise 3-9

The trial balance for Pioneer Advertising Agency shows the following.

Pioneer Advertising Agency
Trial Balance
October 31, 2015

Debit

Credit

$28,347

$28,347


Assume the following adjustment data.


Prepare the adjusting entries for the items above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

Pioneer Advertising Agency
Trial Balance
October 31, 2015

Debit

Credit

Cash $15,054 Supplies 2,936 Prepaid Insurance 468 Equipment 5,137 Notes Payable $4,794 Accounts Payable 2,827 Unearned Service Revenue 1,485 Common Stock 9,218 Retained Earnings –0– Dividends 601 Service Revenue 10,023 Salaries and Wages Expense 3,274 Rent Expense 877

$28,347

$28,347

Explanation / Answer

Prepare the adjusting entries for the items above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date accounts & explanation debit credit Oct 31 Supplies expenses a/c 2635 Supplies a/c 2635 (To record supplies adjusted) Oct 31 Insurance expenses a/c 276 Prepaid insurance a/c 276 (To record prepaid insurance adjusted) Oct 31 Depreciation expenses a/c 56 Accumlated depreciation 56 (To record depreciation) Oct 31 Unearned service revenue a/c 740 Service revenue a/c 740 (To record service revenue) Oct 31 Account receivable a/c 381 Service revenue a/c 381 (To record service revenue recorded) Oct 31 Interest expenses a/c 85 Interest payable a/c 85 (To record interest accured) Oct 31 Salary expenses a/c 1347 Salary payable a/c 1347 (To record accured salary expenses)