5. In the journal provided, prepare adjusting entries for the following items. Omit explanations.

a. Unrecorded interest on savings bonds is $680.

b. Property taxes incurred but not paid or recorded amount to $540.

c. Legal fees of $5,000 were collected in advance. By year end, 60 percent were still unearned.

d. Prepaid Insurance had a $1,600 debit balance prior to adjustment. By year end, 40 percent was still unexpired.

e. Salaries incurred by year end but not yet paid or recorded amounted to $1,375.

f. Services totaling $900 have been performed but not yet recorded or billed.

ANS:

General Journal						Page 1
Date		Description		Post. Ref.	Debit	Credit
a.	Interest Receivable
			Interest Income
b.	Property Taxes Expense
			Property Taxes Payable
c.	Unearned Legal Fees
			Legal Fees Earned
d.	Insurance Expense
			Prepaid Insurance
e.	Salaries Expense
			Salaries Payable
f.	Accounts Receivable
			Service Revenue Earned