Exercise 3-8

On December 31, adjusting information for Blue Spruce Corp. is as follows:

1.Estimated depreciation on equipment is $4,000.

2.Property taxes amounting to $2,500 have been incurred but are unrecorded and unpaid.

3.Employee wages that have been earned by employees but are unpaid and unrecorded amount to $3,820.

4.The Service Revenue account includes amounts that have been paid by customers for services that have not yet been completed. The amount has been determined to be $5,050.

5.Interest of $220 on a $25,000 note payable has not been recorded or paid.

Prepare the adjusting entries and the reversing entries.