Breaker Corporation records prepaid assets and unearned revenues in balance sheet accounts. The following information was used

Question:

Breaker Corporation records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare adjusting entries for Breaker Corporation as of August 31, 2020, the end of the company’s fiscal year:

a. The company has earned $5,000 of unrecorded service revenue.

b. The expired portion of prepaid insurance is $2,700.

c. The earned portion of the Unearned Revenue account balance is $1,900.

d. Depreciation expense for the office equipment is $2,300.

e. Employees have earned but have not been paid salaries of $2,400.

Required

Prepare the appropriate reversing entries that would simplify the bookkeeping effort for recording subsequent cash transactions related to these adjustments.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

Fantastic news! We've Found the answer you've been seeking!