1 update account balances by recording adjusting entries 2 p

The following information applies to the questions displa The December 31, 2018, unadjusted trial balance for Dem Deblt Credit Accounts Cash Accounts Recelvable Prepald Rent Supplles Deferred Revenue Common Stock Retalned Earnings Service Revenue Salaries Expense $ 8,600 13,600 5,520 2,600 $1,600 12,000 4,600 40,120 28,000 $58,320 $58,320

Solution

Adjusting entries:

Account title

Debit

Credit

a

Rent expenses

5,520

Prepaid rent

5,520

b

Deferred revenue

400

Service revenue

400

c

Salary expenses

500

Salary payable

500

d

Supplies expenses

         1,940

Office supplies

        1,940

Adjusted trial balance:

Account

Debit

Credit

Cash

           8,600

Accounts receivable

         13,600

Supplies

               660

Deferred revenue

           1,200

Salary payable

               500

Common stock

         12,000

retained earnings

           4,600

Service revenue

         40,520

Salary expenses

         28,500

Rent expenses

           5,520

Supply expenses

           1,940

         58,820

         58,820

	Account title	Debit	Credit
a	Rent expenses	5,520
	Prepaid rent		5,520
b	Deferred revenue	400
	Service revenue		400
c	Salary expenses	500
	Salary payable		500
d	Supplies expenses	1,940
	Office supplies		1,940