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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
_________________________________________________