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    Solution Ex Adjustment Entries PDF

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    Ali Sher Baloch
    The adjusting entries for Air & Sea Travel, Inc. at April 30 include: 1) Recognizing $1,000 of expired prepaid rent expense, $300 of supplies expense used, and $275 of depreciation expense on furniture. 2) Accruing $950 of salary expense, $250 of service revenue, and $540 of income tax expense. 3) Recording $150 of previously unearned service revenue that was earned.

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    Solution Ex Adjustment Entries PDF

    Uploaded by

    Ali Sher Baloch
    148 views3 pages
    The adjusting entries for Air & Sea Travel, Inc. at April 30 include: 1) Recognizing $1,000 of expired prepaid rent expense, $300 of supplies expense used, and $275 of depreciation expense on furniture. 2) Accruing $950 of salary expense, $250 of service revenue, and $540 of income tax expense. 3) Recording $150 of previously unearned service revenue that was earned.

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    SOLUTION EX ADJUSTMENT ENTRIES.pdf

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    The adjusting entries for Air & Sea Travel, Inc. at April 30 include: 1) Recognizing $1,000 of expired prepaid rent expense, $300 of supplies expense used, and $275 of depreciation expense on furniture. 2) Accruing $950 of salary expense, $250 of service revenue, and $540 of income tax expense. 3) Recording $150 of previously unearned service revenue that was earned.

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    148 views3 pages

    Solution Ex Adjustment Entries PDF

    Uploaded by

    Ali Sher Baloch
    The adjusting entries for Air & Sea Travel, Inc. at April 30 include: 1) Recognizing $1,000 of expired prepaid rent expense, $300 of supplies expense used, and $275 of depreciation expense on furniture. 2) Accruing $950 of salary expense, $250 of service revenue, and $540 of income tax expense. 3) Recording $150 of previously unearned service revenue that was earned.

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    of 3

    EXERCISE 6 – ADJUSTMENT ENTRIES

    Please journalize the following adjustments of Air & Sea Travel, Inc., at April 30 and post them to the ledger:

    (a) Prepaid rent expired, $1.000.

    (b) Supplies used, $300.

    (c) Depreciation on furniture, $275.

    (d) Accrued salary expense, $950.

    (e) Accrued service revenue, $250.

    (f) Amount of unearned service revenue that has been earned, $150.

    (g) Accrued income tax expense, $540.

    1
     SOLUTION The Adjusting Process of Air & Sea Travel, Inc.
    _______________________________________________________________________________________

    Information for Adjustments Adjusting Entries


    at April 30, 20X3
    ___________________________________ ____________________________________________
    (h) Prepaid rent expired, $1.000. (a) Rent Expense ......................................... 1.000
    Prepaid rent ....................................... 1.000
    To record rent expense.
    (i) Supplies used, $300. (b) Supplies Expense .................................... 300
    Supplies ............................................... 300
    To record supplies used.
    (j) Depreciation on furniture, $275. (c) Depreciation Expense – Furniture ....... 275
    Accumulated Depreciation – Furniture 275
    To record depreciation on furniture.
    (k) Accrued salary expense, $950. (d) Salary Expense ......................................... 950
    Salary Payable ..................................... 950
    To accrue salary expense.
    (l) Accrued service revenue, $250. (e) Accounts Receivable ................................ 250
    Service Revenue .................................. 250
    To accrue service revenue.
    (m) Amount of unearned service revenue that (f) Unearned Service Revenue ...................... 150
    has been earned, $150. Service Revenue ................................... 150
    To record unearned service revenue that
    has been earned.
    (n) Accrued income tax expense, $540. (g) Income Tax Expense ................................. 540
    Income Tax Payable ............................. 540
    To accrue income tax expense.

    2
    Ledger Accounts
    _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

    ASSETS LIABILITIES STOCKHOLDERS’ EQUITY


    _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

    Expenses
    Common Stock
    Cash Prepaid Rent Accounts Payable Rent Expense
    Bal. 20.000
    Bal. 24.800 3.000 (a) 1.000 Bal. 13.100 (a) 1.000
    Bal. 2.000 Bal. 1.000

    Furniture Retained Earnings Salary Expense


    Accounts Receivable Salary Payable
    Bal. 16.500 Bal. 11.250 950
    2.250 (d) 950
    (e) 250 Bal. 950 (d) 950

    Bal. 2.500 Bal. 1.900

    Accumulated Dividends
    Depreciation – Unearned Service Supplies Expense
    Supplies Bal. 3.200
    Furniture Revenue
    700 (b) 300 (b) 300
    (c) 275 (f) 150 450
    Bal. 400 Bal. 300
    Bal. 275 Bal. 300

    Depreciation
    Income Tax Payable Expense - Furniture
    (g) 540 (c) 275
    Bal. 540 Bal. 275

    Utilities Expense
    Revenue Bal. 400
    Service Revenue
    7.000 Income Tax
    (e) 250 Expense
    (f) 150 (g) 540

    Bal. 7.400 Bal. 540


    _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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