The trial balances shown below are before and after adjustment for Digital Company at the end of its fiscal year:

Instructions Prepare the adjusting entries that were made.

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DIGITAL COMPANY Trial Balance August 31, 2001 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Office Supplies Accounts Payable Cash Accounts Receivable Prepaid Insurance Office Equipment Accumulated Depreciation-Office Equipment Salaries Payable $10,400 $10,400 8,800 9,400 2,300 700 4,000 2,500 14,000 14,000 $ 3,600 $ 4,800 5,800 5,800 0 1,100 Unearned Rent Revenue 1,500 700 Common Stock 10,000 10,000 Retained Earnings 5,600 5,600 Service Revenue 34,000 34,600 Rent Revenue 11,000 11,800 Salaries Expense 17,000 18,100 Office Supplies Expense 0 1,600 Rent Expense 15,000 15,000 Insurance Expense 0 1,500 Depreciation Expense $71,500 $71,500 $74,400 $74,400 0 1,200