Chapter 3: Adjusting Entries 12. P3-30A Explain the need for an adjusting entry & calculate the amount a. Reccived $1.500 cash from a Supplement Worksheet Descriptions of transactions and how they were recorded follow for of the adjustment 15-25 min Oct, 2012 for Ausley Acoustics, Inc. 2012. The customer for three months of service beginning Oct. 1,2012, and ending Dec. 31, e company recorded a $1,500 debit to Cash and a $1,500 credit to Uncaned service revenue. b. Employes are paid $1,000 every Friday for the five-day work week. October 31, 2012, is on Wedncsday c. The company pays $240 on October 1 for their six-month auto insurance policy. The company d. The company purchased office furniture for $6,300 on Jan 2, 2012. The company e. The company began October with $50 of supplies on hand. On Oct 10, the company purchased supplies on $240 debit to Prepaid insurance and a $240 credit to Cash recorded a $6,300 debit to Office furniture and a $6,300 credit to Accounts payable. Annual depreciation for the account of $100. The company used $120 of supplies during October furniture is $900. company recorded a $100 debit to Supplies and a $100 credit to Accounts payable. The f. The company received its electric bill on October 30 for $125 but did not pay it until November 10. On November 10, it recorded a $125 debit to Ueilities expense and a $125 credit to Cash. g The company paid Nov's rent on Oct 30 of $800. On Oct 30, the company recorded an $800 debit to Rent expense and an $800 credit to Cash. Requirement: Indicate if an adjusting entry is needed for each item on Oct 31 and why the entry is nceded (i.e. an asset or liability account is over/understated). Indicate which specific account on the balance sheet is misstated. Finally, indicate the correct balance that should appear in the balance sheet account afiter dhe adjustment i made. Use the following table guide. Item a is completed as an example: Adjustment Asset/Liability Understated? Correct balance on Oct. 31 $1,000 Over- Balance sheet account Uncarned service revenue Yes Liability .ge 13134