LO5 The use of reversing entries is optional. Reverse the adjusting entries that increase asset or liability accounts that do not have previous balances. A contra account, such as Accumulated Depreciation, should not be reversed. Reversing entries are dated as of the first day of the next fiscal period. Professional Fees Income Bal. Bal. Adj. Bal. Bal. Bal. Adj. From the st Merchandise Inv. 50,000 Adj. Merchandise Inv. 50,000 Adj. 51,500 Supplies 2,100 Adj. Supplies Expense 875 Salaries Expense 51,265 3,335 determalm 50,000 Adj. 50,000 875 Bal. Adj. Bal. Income Summary 50,000 Income Summary 50,000 Adj. Insurance Exp. 1,300 Prepaid Insurance 3,500 Adj. Salaries Payable Adj. 51,500 1,300 3,335 Adj. Adj. Adj. Unearned Professional Fees Income 1,000 Bal. Depreciation Expense, Equipment ha unund and inummaline the routeraing anting 5,250 1,000 Accumulated Depreciation, Equipment Bal. Adj. 1,050 55,000 5,250

The use of ceversing entries is cptional. Reverse the adjusting entries that increase asset or liablity accounts that do not have previous balances. A contra account, as Accumulated Depreciation, should not be reversed. Reversing entries are dated as of the first day of the next fiscal period