Preparing Accounting Adjustments and Posting L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July 31, before any accounting adjustments have been made.

Prepaid rent	$6,900
Prepaid advertising	630
Supplies	3,000
Unearned refinishing fees	600
Refinishing fees revenue	2,500

1. Using the following information, prepare the adjusting journal entries on July 31 for each transaction. a. On July 1, the firm paid one years rent of $6,900 in cash. b. On July 1, $630 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September. c. Supplies still available at July 31 total $1,100. d. At July 31, refinishing services of $800 have been performed but not yet recorded or billed to customers. The firm uses the fees receivable account to reflect amounts due but not yet billed. e. In early July, a customer paid $600 in advance for a refinishing project. At July 31, the project is onehalf complete.

	Account	Debit	Credit
a.	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	To record July rent expense
b.	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	To record July advertising expense
c.	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	To record supplies expense for July
d.	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	To record unbilled revenue earned during July.
e.	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashDepreciation ExpenseEquipmentFees RevenueInsurance ExpenseInterest IncomeInterest ReceivablePrepaid AdvertisingPrepaid InterestPrepaid RentRent ExpenseRetained EarningsService Fees EarnedSuppliesSupplies ExpenseUnearned Fees RevenueWages ExpenseWages PayableN/A	Answer	Answer
	To record portion of advance fees earned in July

2. Set up Taccounts for each of the ledger accounts, and post the journal entries to them.

Prepaid Rent
Beg. balance	Answer	Answer	(a)
Bal.	Answer	Answer

Prepaid Advertising
Beg. balance	Answer	Answer	(b)
Bal.	Answer	Answer

Supplies
Beg. balance	Answer	Answer	(c)
Bal.	Answer	Answer

Accounts Receivable
(d)	Answer	Answer
Bal.	Answer	Answer

Unearned Fees Revenue
(e)	Answer	Answer	Bal.
	Answer	Answer	Bal.

Rent Expense
(a)	Answer	Answer
Bal.	Answer	Answer

Advertising Expense
(b)	Answer	Answer
Bal.	Answer	Answer

Supplies Expense
(c)	Answer	Answer
Bal.	Answer	Answer

Fees Revenue
	Answer	Answer	Bal.
	Answer	Answer	(d)
	Answer	Answer	(e )
	Answer	Answer	Bal.

Please answer all parts of the question.