Exercise 4-5

The adjustments columns of the worksheet for Misra Company are shown below.

		Adjustments
Account Titles		Debit		Credit
Accounts Receivable		900
Prepaid Insurance				200
Accumulated DepreciationEquipment				800
Salaries and Wages Payable				400
Service Revenue				900
Salaries and Wages Expense		400
Insurance Expense		200
Depreciation Expense		800
		2,300		2,300

Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record service revenue on account)
(To record expired insurance)
(To record depreciation)
(To record accrued salaries)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Indicate with an "X" the financial statement column to which each balance should be extended.

		Income Statement				Balance Sheet
Account Titles		Debit		Credit		Debit		Credit
Accounts Receivable		X		X		X		X
Prepaid Insurance		X		X		X		X
Accumulated DepreciationEquipment		X		X		X		X
Salaries and Wages Payable		X		X		X		X
Service Revenue		X		X		X		X
Salaries and Wages Expense		X		X		X		X
Insurance Expense		X		X		X		X
Depreciation Expense		X		X		X		X

SHOW LIST OF ACCOUNTS