The accounting records of Fairmount Publishing Company include the following unadjusted balances at August 31: Accounts Receivable, $1,500; Supplies, $500; Salary Payable, $0; Unearned Service Revenue, $600; Service Revenue, $4,200; Salary Expense, $1,900; Supplies Expense, $0.
Fairmount’s accountant develops the following data for the August 31 adjusting entries:
a. Supplies on hand, $300
b. Salary owed to employees, $400
c. Service revenue accrued, $900
d. Unearned service revenue that has been earned, $500
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.