Limbo Lower has completed all of its journal entries for the month of May 2022, and posted them to the general ledger. Based on the ledger balances, an unadjusted trial balance has been prepared. The following adjustments must be made.

May 31	The amount of prepaid insurance is for 12 months; one month has been used.
May 31	Depreciation for the month on equipment was $180.
May 31	Unearned revenue of $630 has now been earned.
May 31	Work was performed for $920 which will be paid for next month.

Required

a) Using the following unadjusted trial balance, complete the adjustments and the adjusted trial balance in the worksheet.

Do not enter dollar signs or commas in the input boxes.

Select the proper order for the headings of the worksheet.

AnswerLimbo LowerMay 31, 2022Worksheet AnswerLimbo LowerMay 31, 2022Worksheet AnswerLimbo LowerMay 31, 2022Worksheet
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account	DR	CR	DR	CR	DR	CR
Cash	5,940		Answer	Answer	Answer	Answer
Accounts Receivable	1,740		Answer	Answer	Answer	Answer
Prepaid Insurance	3,000		Answer	Answer	Answer	Answer
Equipment	9,260		Answer	Answer	Answer	Answer
Accumulated Depreciation			Answer	Answer	Answer	Answer
Accounts Payable		3,080	Answer	Answer	Answer	Answer
Unearned Revenue		2,240	Answer	Answer	Answer	Answer
Bank Loan		4,380	Answer	Answer	Answer	Answer
Patel, Capital		7,320	Answer	Answer	Answer	Answer
Patel, Withdrawals	1,400		Answer	Answer	Answer	Answer
Service Revenue		5,630	Answer	Answer	Answer	Answer
Depreciation Expense			Answer	Answer	Answer	Answer
Insurance Expense			Answer	Answer	Answer	Answer
Interest Expense	80		Answer	Answer	Answer	Answer
Rent Expense	1,230		Answer	Answer	Answer	Answer
Total	22,650	22,650	Answer	Answer	Answer	Answer

b) Create the journal entries for the adjustments from the worksheet.

Date	Account Title and Explanation	Debit	Credit
2022
May 31	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue		Answer
	To expense one month of insurance
May 31	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue		Answer
	To depreciate Equipment
May 31	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue		Answer
	To recognize unearned revenue now earned
May 31	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationBank LoanCashDepreciation ExpenseEquipmentInsurance ExpenseInterest ExpensePatel, CapitalPatel, WithdrawalsPrepaid InsuranceRent ExpenseService RevenueUnearned Revenue		Answer
	To accrue service revenue