The accounting records of Belmont Publishing Company include the following unadjusted balances at August 31: Accounts Receivable, $1,400; Supplies, $300; Salary Payable, $0; Unearned Service Revenue, $1,000; Service Revenue, $4,600; Salary Expense, $2,400; Supplies Expense, $0.
Belmont’ accountant develops the following data for the August 31 adjusting entries:
a. Supplies on hand, $100
b. Salary owed to employees, $700
c. Service revenue accrued, $500
d. Unearned service revenue that has been earned, $200
Open the foregoing T-accounts with their beginning balances. Then record the adjustments directly in the accounts, keying each adjustment amount by letter. Show each account’s adjusted balance. Journal entries are not required.