Jennings Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies

Question:

Jennings Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue $9,200, and zero balances in related accounts. Prepare the adjusting entries at April 30 assuming
(a) $700 of supplies on hand and
(b) $3,000 of service revenue should be reported as unearned.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...