E4-11

Prepare adjusting entries.

The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4 below.

SIERRA CORPORATION

Trial Balance

October 31, 2017

Debit

Credit

Cash

$15,200

Supplies

2,500

Prepaid Insurance

600

Equipment

5,000

Notes Payable

$5,000

Accounts Payable

2,500

Unearned Service Revenue

1,200

Common Stock

10,000

Retained Earnings

0

Dividends

500

Service Revenue

10,000

Salaries and Wages Expense

4,000

Rent Expense

900

$28,700

$28,700

Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data.

1.Supplies on hand at October 31 total $500.

2.Expired insurance for the month is $100.

3.Depreciation for the month is $75.

4.As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed.

5.Services performed but unbilled (and no receivable has been recorded) at October 31 are $280.

6.Interest expense accrued at October 31 is $70.

7.Accrued salaries at October 31 are $1,400.

Instructions

Prepare the adjusting entries for the items above.