The adjustments columns of the worksheet for Becker Company

The adjustments columns of the worksheet for Becker Company are shown below Adjustments Account Titles Debit Credit Accounts Receivable Prepaid Insurance Accumulated Depreciation Salaries and Wages Payable Service Revenue Salaries and Wages Expense Insurance Expense Depreciation Expense 1,240 300 800 460 1,240 -Equipment 460 300 800 2,800 2,800 Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit To record service revenue on account)

Solution

Adjusting entry :

Classification

Date	account and explanation	debit	credit
	Account receivable	1240
	Service revenue		1240
	(To record service revenue)
	Insurance expense	300
	Prepaid insurance		300
	(To record insurance expired)
	Depreciation expense	800
	Accumlated depreciation		800
	(To record depreciation)
	Salary and wages expense	460
	Salary and wages payable		460
	(To record accured salaries)