Prepare the adjusting entries
Duncan Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $3,207, Service Revenue $9,913, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming
(a) $1,624 of supplies on hand and (b) $2,962 of service revenue should be reported as unearned.
Date Account/Description Debit Credit
(a) Apr. 30
(b) Apr. 30
My answer was
(a) supplies expense 1,583
Prepaid supplies 1,583
(b) unearned service revenue 8,289
Service revenue 8,289