Answered Essay: E3-9 The trial balance for Pioneer Advertising is shown in Illustration 3-3 (page 97). Instead of the adjusting entries shown in the textbook at October 31

E3-9 The trial balance for Pioneer Advertising is shown in Illustration 3-3 (page 97). Instead of the adjusting entries shown in the textbook at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500 2. Expired insurance for the month is $120 3. Depreciation for the month is $50. 4. Services related to unearned service revenue in October worth $600 were performed. 5. Services performed but not recorded at October 31 are $360 6. Interest accrued at October 31 is $95. 7. Accrued salaries at October 31 are $1,625. Instructions
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E3-9 The trial balance for Pioneer Advertising is shown in Illustration 3-3 (page 97). Instead of the adjusting entries shown in the textbook at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500 2. Expired insurance for the month is $120 3. Depreciation for the month is $50. 4. Services related to unearned service revenue in October worth $600 were performed. 5. Services performed but not recorded at October 31 are $360 6. Interest accrued at October 31 is $95. 7. Accrued salaries at October 31 are $1,625. Instructions

Expert Answer

Solution:

Adjusting entries:

Date Account titles Debit Credit
1 Oct 31 Supplies expense $2,000
Supplies(2500-500) $2,000
2 Oct 31 Insurance expense $120
Prepaid insurance $120
3 Oct 31 Depreciation expense $50
Accumulated depreciation- office equipment $50
4 Oct 31 Unearned revenue $600
Service revenue $600
5. Oct 31 Account Receivable $360
Service revenue $360
6 Oct 31 Interest expense $95
Interest payable $95
7. Oct 31 Salaries expense $625
Salary payable $625
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