Exercise 4-01

Brief Exercise 4-02 The ledger of Blue Spruce Company includes the following unadjusted balances: Prepaid Insurance $3,400, Service Revenue $58,400, and Salaries and Wages Expense $25,800. Adjusting entries are required for (a) expired insurance $2,200; (b) services performed $1,700, but unbilled and uncollected; and (c) accrued salaries payable $700. Enter the unadjusted balances and adjustments into a worksheet and complete the worksheet for all accounts. BLUE SPRUCE COMPANY Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Prepaid Insurance Service Revenue Salaries and Wages Expense Accounts Receivable Salaries and Wages Payable Insurance Expense