Spring Company prepared the following adjusting entries at year end on August 31, 20X7:

(a) Interest Expense.......................................................................... 275

Interest Payable.................................................................. 275

(b) Unearned Service Revenue...................................................... 1,450

Service Revenue................................................................ 1,450

(c) Insurance Expense..................................................................... 1,200

Prepaid Insurance.............................................................. 1,200

(d) Interest Receivable..................................................................... 200

Interest Revenue................................................................ 200

(e) Supplies Expense....................................................................... 250

Supplies............................................................................... 250

(f) Wages Expense........................................................................... 2,500

Wages Payable................................................................... 2,500

(g) Depreciation Expense................................................................ 500

Acc. Depreciation - Office Eq............................................. 500

Question 5: Cont'd: In an effort to minimize errors in recording transactions, Spring Company utilizes reversing entries.

Required: Prepare reversing entries.

Answer rating: 100% (QA)

Certainly to minimize errors in recording transactions Spring Company can utilize reversing entries ... View the full answer