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The ledger of Giovanni Party Decorations Company includes the following unadjusted balances: Prepaid Insurance $4,000, Service Revenue $58,000, and Salaries Expense $25,000. Adjusting entries are...

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The ledger of Giovanni Party Decorations Company includes the following unadjusted balances: Prepaid Insurance $4,000, Service Revenue $58,000, and Salaries Expense $25,000. Adjusting entries are required for

(a) expired insurance $1,200;

(b) services provided $900, but unbilled and uncollected; and

(c) accrued salaries payable $800. Enter the unadjusted balancesand adjustments into a work sheet and complete the work sheet for all accounts. (Note: You will need to add the following accounts: Accounts Receivable, Salaries Payable, and Insurance Expense.)

Answered 128 days After May 25, 2022

Solution

Ca Komal answered on Oct 01 2022
70 Votes
Sheet1
            Ledger Accounts
            For Giovanni Party Decorations Company
        A.    Ajusting Entries
            Sr. No.    Description                Debit        Credit
            Part a.    Insurance Expense account                $1,200
                Prepaid Insurance                        $1,200
            Part b.    Accounts Receivable account                $ 900
                Service Revenue account                        $ 900
            Part c    Salaries expense account                $...
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