Question

Exercise 23 Prepare adjusting entries for the following transactions. Credit account ties are automatically indented when the amount is entered. Do not indent manually. If na entry is required, selecta amount) entry for the account titles and enter a forche 1. Unrecorded interest accrued on savings bonds is 5360 Property taxes incurred but not paid or recorded amount to $704 Unearned service revenue of $3,520 was collected in advance. By year and $516 was still unearned. Prepaid insurance had a 5660 debit balance prior to adjustment By year end, 60 percent was still unexpired Salons incurred by year end but not yet paid or recorded amounted to 5572 4. 5.

Answer 1

Date	General Journal	Debit	Credit
1	Interest receivable	$360
	Interest revenue		$360
	( To record interest revenue)
2	Property tax expense	$704
	Property tax payable		$704
	( To record property tax)
3	Unearned service revenue	$2,904
	Service revenue		$2,904
	( To record service revenue earned)
4	Insurance expense	$264
	Prepaid insurance		$264
	( To record insurance expense)
5	Salaries expense	$572
	Salaries payable		$572
	( To record salaries expense)

3.

Service revenue earned = Unearned service revenue, beginning - Unearned service revenue, ending

= 3,520-616

= $2,904

4.

Prepaid insurance, beginning = $660

Prepaid insurance, ending = 660 x 60%

= $396

Insurance expense = Prepaid insurance, beginning - Prepaid insurance, ending

= 660-396

= $264

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks