The ledger of Umatilla, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries. Debit Credit
Supplies 2,500
Prepaid Insurance 2,400
Equipment 30,000
Unearned Service Revenue 10,000
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $300 per month.
2. Supplies on hand total $900.
3. The equipment depreciates $200 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Prepare the adjusting entries for the month of March.

1. Dr Insurance expence $300

Cr Prepaid insurance $300

2. Dr Supplies expense $1,600

Cr Supplies Asset $1,600

3. Dr Depreciation expense $200

Cr Accumulated Depreciation $200

4. Dr Unearned Service Revenue $4,000

Cr Service revenue $4,000

Explanation:

Preparation for the adjusting entries for the month of March.

1. Dr Insurance expence $300

Cr Prepaid insurance $300

(Being to record expired Insurance)

2. Dr Supplies expense $1,600

Cr Supplies Asset $1,600

($2,500+$900)

(Being to record Supplies on hand)

3. Dr Depreciation expense $200

Cr Accumulated Depreciation $200

(Being to record Depreciation of equipment)

4. Dr Unearned Service Revenue $4,000

Cr Service revenue $4,000

(2/5*$10,000)

(Being to record two-fifths of the unearned service revenue)

a corporation is legally separate from its owner, and it pays its own taxes.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

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reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

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conversion, and return on investment (kraemer, et al., 2000).

explanation: