Record the adjusting journal entries for December 31 for the

Record the adjusting journal entries for December 31 for the following transactions. a. Office Supplies used, $800. Assume the office supplies were intially recorded as an asset. b. Accrued salaries on December 31, $600. c. On December 1st the company prepaid $6,000 for six months of insurance. d. Service revenue of $3,000 that was originally deferred has now been earned

Solution

On 31st Dec 20XX

Ref	Accounts title	Dr.	Cr.
a	supplies expense	$800
	To office supplies		800
b	salaries expense	$600
	To Accrued salaries		600
c	Insurance expense [$6000 / 6 months * 1 months]	$1000
	To prepaid insurance		1000
d	Unearned revenue	$3000
	To Service revenue		3000