Q9E Selected accounts of Urdu Compan... [FREE SOLUTION]

Chapter 3: Q9E (page 132)

Selected accounts of Urdu Company are shown below.
Supplies
Beg. Bal
800
10 鈦� 31
470
Salaries and Wages Expense
10 鈦� 15
800
10 鈦� 31
600
Unearned Service Revenue
10 鈦� 31
400
10 鈦� 20
650
Service Revenue
10 鈦� 17
2,400
10 鈦� 31
1,650
10 鈦� 31
400
Accounts Receivable

10 鈦� 17
2,400
10 鈦� 31
1,650
Salaries and Wages Payable
10 鈦� 31
600
Supplies Expense

10 鈦� 31
470
Instructions
From an analysis of the T-accounts, reconstruct
(a) the October transaction entries, and
(b) the adjusting journal entries that were made on October 31, 2017. Prepare explanations for each journal entry

Expert verified

A journal entry refers to a record of the monetary business transactions in a date-wise manner and a proper format.

Date	Particulars	Debit ($)	Credit ($)
Oct. 15, 2017	Salaries & Wages expense	800
	Cash		800
	(To record payment of October 15 payroll)

Oct. 17, 2017	Account receivables	2,400
	To service revenue		2,400
	(To record revenue for services performed for which payment has not yet been received)

Oct. 20, 2017	Cash	650
	Unearned service revenue		650
	(To record receipt of cash for service not yet performed)
		$3,850	$3,850

Date	Particulars	Debit ($)	Credit ($)
Oct. 31, 2017	Supplies expense	470
	Supplies		470
	(To record the use of supplies during October)

Oct. 31, 2017	Accounts receivables	1,650
	Service revenue		1,650
	(To record revenue for services performed for which payment has not yet been received)

Oct. 31, 2017	Salaries & Wages expense	600
	Salaries & wages payable		600
	(To record liability for accrued payroll)

Oct. 31, 2017	Unearned service revenue	400
	Service revenue		400
	(To reduce unearned service) revenue, account for service that has been performed)
		$3,120	$3,120

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MASON ADVERTISINGTRIAL BALANCEDECEMBER 31, 2017
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	\( 11,000		\) 11,000
Accounts Receivable	20,000		23,500
Supplies	8,400		3,000
Prepaid Insurance	3,350		2,500
Equipment	60,000		60,000
Accumulated Depreciation鈥擡quipment		\( 28,000		\) 33,000
Accounts Payable		5,000		5,000
Interest Payable		鈥�0鈥�		150
Notes Payable		5,000		5,000
Unearned Service Revenue		7,000		5,600
Salaries and Wages Payable		鈥�0鈥�		1,300
Common Stock		10,000		10,000
Retained Earnings		3,500		3,500
Service Revenue		58,600		63,500
Salaries and Wages Expense	10,000		11,300
Insurance Expense			850
Interest Expense	350		500
Depreciation Expense			5,000
Supplies Expense			5,400
Rent Expense	4,000		4,000
	\(117,100	\)117,100	\(127,050	\)127,050