0 3 Adjusting the Accounts BRIEF EXERCISES BE3-1 The ledger of Jung Company includes the following accounts. Explatn why account may require adjustment. (a) Prepaid Insurance. (b) Depreciation Expense. (c) Unearned Service Revenue (d) Interest Payable December 31 and so on), and Indicate (a) the type of adjustment (prepaid expense, accrued revenue, (b) the status of accounts before adjustment (overstated or understated), I. Supplies of $100 are on hand. 2. Services performed but not recorded total $900. 3. Interest of $200 has accumulated on a note payable. 4. Rent collected in advance totaling $650 has been earned. ldeweitfy the major ypes of BE3-2 Motekd Company accumulates the following adjustment data at repare edlusting emury for BE3-3 Ritter Advertising Company's trial balance at December 31 shows Supplies $6,700 LO 2) and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. $30,000 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,000. Prepare the adjusting entry for depreclation at December 31, post the adjustments to T-accounts, and indicate the epare adjusting entry for BE3-4 At the end of its first year, the trial balance of Nygaard Company shows Equipment LO balance sheet presentation of the equipment at December 31. repare adjusting eary for 8E3-5 On July 1, 2017, Dobbs Co pays $14,400 to Kalter Insurance Co. for a 3-year insur repaid expense ance contract. Both companles have fiscal years ending December 31. For Dobbs Co., journalize and post the entry on July 1 and the adjusting entry on December 31. epare adusting entry for BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting nearned revenue entry on December 31 for Kalter Insurance Co. Kalter uses the accounts U Revenue and Service Revenue. re for BE3-7 The bookkeeper for Bradbury Company asks you to prepare the following accrued adjusting entries at December 31 1. Interest on notes payable of $400 is accrued. 2. Services performed but not recorded total $1,900. 3. Salaries earned by employees of $900 have not been recorded. 03) Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. diusted t 1,2.3) accoents in anBE3-8 The trial balance of Yewlett Company includes the following balance sheet accounts, rial belance.which may require adjustment. For each account that requires adjustment, indicate (a) the type of adjusting entry (prepaid expense, unearmed revenue, accrued revenue, or accrued expense) and (b) the related account in the adjusting entry Accounts Receivable Prepaid Insurance Interest Payable Unearned Service Revenue ted stasement BE3-9 The adjusted trial balance of Parsons Company at December 31, 2017, includes the r a income r an adjusted trial following accounts: Common Stock $15,600, Dividends $7,000, Service Revenue $37.000. Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000 Supplies Expense $1,500, and Depreciation Expense $1,300. Prepare an income for the year statement