Question

This is my second time submitting this exact same file. The last person did not finish all of it. They only did these sections: Interest payable, Salaries & wages payable, & Accounts receivable. I would greatly appreciate it if you helped me because I am starting to study for my exam and I need these answers to progress. Thank your help and understanding.

Problem 3 Page 6 Chapter 03 Group Work - STU Beerbo Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020 SO Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accum. Depr. - Equip. Accounts Payable Interest Payable Note Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense BEERBO ADVERTISING Trial Balance December 31, 2020 Unadiusted Adjusted DR CR D R CR $ 11,000 $ 11,000 $ 20.000 $ 23,500 $ 8,400 $3,000 $ 3,350 $ 2,500 $ 60,000 $ 60,000 I $ 28,000 $ 33,000 $ 5,000 $ 5,000 $ 150 $5,000 $5,000 $7,000 $ 5,600 SO $ 1,300 $ 10,000 $ 10,000 $ 3,500 $ 3,500 1 $ 58,600 $ 63,500 $10,000 $ 11,300 $ 850 $350 $ 500 I $5,000 S 5,400 $ 4.000 T $117.1001 $117.1001 $1270501 $127050 Instructions: Record the journal entries that show how the UNADJUSTED balances changed to the ADJUSTED balances. Adjusting journal entry for ACCOUNTS RECEIVABLE By how was 'ACCOUNTS RECEIVABLE' adjusted? (in absolute $] What was the nature of the adjustment? [increase / decrease) Below record the adjusting journal entry to recognize the adjustment. Dec Debit Credit Adjusting journal entry for UNEARNED SERVICE REVENUE By how was 'UNEARNED SERVICE REVENUE' adjusted? (in absolute $] What was the nature of the adjustment? [increase / decrease Below, record the adjusting journal entry to recognize the adjustment. Dec Debit Credit

Answer 1

Adjusting Journal entry for Accounts Receivable
By how was "Accounts Receivable" adjusted?		$        3,500
What was the nature of adjustment		Increase
Journal Entry
Account Titles	Debit	Credit
Accounts Receivable	$         3,500
Service Revenue		$        3,500
Adjusting Journal entry for Unearned Service Revenue
By how was "Unearned Service Revenue" adjusted?		$        1,400
What was the nature of adjustment		Decrease
Journal Entry
Account Titles	Debit	Credit
Unearned Service Revenue	$         1,400
Service Revenue		$        1,400
Adjusting Journal entry for Supplies
By how was "Supplies" adjusted?		$        5,400
What was the nature of adjustment		Decrease
Journal Entry
Account Titles	Debit	Credit
Supplies Expense	$         5,400
Supplies		$        5,400
Adjusting Journal entry for Depreciation on Equipment
By how was "Accumulated Depreciation - Equipment" adjusted?		$        5,000
What was the nature of adjustment		Increase
Journal Entry
Account Titles	Debit	Credit
Depreciation Expense	$         5,000
Accumulated Depreciation - Equipment		$        5,000
Adjusting Journal entry for Interest Payabe
By how was "Interest Payable" adjusted?		$           150
What was the nature of adjustment		Increase
Journal Entry
Account Titles	Debit	Credit
Interest Expense	$            150
Interest Payable		$           150
Adjusting Journal entry for Prepaid Insurance
By how was "Prepaid Insurance" adjusted?		$           850
What was the nature of adjustment		Decrease
Journal Entry
Account Titles	Debit	Credit
Insurance Expense	$            850
Prepaid Insurance		$           850
Adjusting Journal entry for Salaries and Wages Payable
By how was "Salaries and Wages Payable" adjusted?		$        1,300
What was the nature of adjustment		Increase
Journal Entry
Account Titles	Debit	Credit
Salaries and Wages Expense	$         1,300
Salaries and Wages Payable		$        1,300

Income Statement
Revenues
Service Revenue		$      63,500
Expenses
Salaries and Wages Expense	$      11,300
Insurance Expense	$            850
Interest Expense	$            500
Depreciation Expense	$         5,000
Supplies Expense	$         5,400
Rent Expense	$         4,000
Total Expenses		$      27,050
Net Income		$      36,450

Statement of Retained Earnings
Beginning Balance	$         3,500
Add : Net Income	$      36,450
Ending Balance	$      39,950

Balance Sheet
Assets
Cash		$      11,000
Accounts Receivable		$      23,500
Supplies		$        3,000
Prepaid Insurance		$        2,500
Equipment	$      60,000
Less Accumulated Depreciation	$     -33,000	$      27,000
Total Assets		$      67,000
Liabilities & Stockholder's Equity
Accounts Payable	$         5,000
Interest Payable	$            150
Note Payable	$         5,000
Unearned Service Revenue	$         5,600
Salaries and Wages Payable	$         1,300
Total Liabilities		$      17,050
Stockholder's Equity
Common Stock	$      10,000
Retained Earnings	$      39,950	$      49,950
Total Liabilities & Stockholder's Equity		$      67,000

Interest Payable at year end	$            150
Months	3
Interest accrued each month	$              50
Months in year	12
Interest for enitre year	$            600
Notes Payable Balance	$         5,000
Interest Rate	12%

	2019	2020
	Dec	Jan-Nov	Dec
Salaries expense		$      11,300
Salaries and wages payable balance			$        1,300
Jan-Nov 2020 Salaries expense		$      10,000
Salaries and wages paid	$      12,500
Salaries and wages payable balance 2019	$         2,500