Recreating adjusting journal entries (Learning Objective 2) 10–15 min.

The adjusted trial balances of XYZ, Inc., at August 31, 2014, and August 31, 2015, include these amounts:

Supplies ...............................................................................................

Salaries Payable...................................................................................

Unearned Service Revenue ..................................................................

2014

$ 4,000 1,700 17,000 2015

$1,500 4,400 9,900 Analysis of the accounts at August 31, 2015, reveals these transactions for the past twelve months:

Purchases of supplies...........................................................................................

Cash payments for salaries ...................................................................................

Cash receipts in advance for service revenue........................................................

$ 6,500 59,800 66,400 Requirement Compute the amount of supplies expense, salaries expense, and service revenue XYZ, Inc., will report for the year ended August 31, 2015. Solve by making T-accounts and posting the information to solve for the unknown amounts.

AppendixLO1