Appendix I
Review Exercise Solutions
396
b) Prepare the adjusting journal entries.
JOURNAL
Page 2
Date Account Title and Explanation
PR
Debit
Credit
2016
Jun 30 Insurance Expense
515
100
Prepaid Insurance
110
100
Recognized one month of insurance used
Jun 30 Unearned Revenue
210
450
Service Revenue
400
450
Recognized revenue previously unearned
Jun 30 Interest Expense
520
25
Interest Payable
205
25
Accrued interest on bank loan
Jun 30 Depreciation Expense
510
100
Accumulated Depreciation
125
100
Recorded depreciation of equipment
Jun 30 Accounts Receivable
105
900
Service Revenue
400
900
Record accrued revenue
GENERAL LEDGER
Account: Cash
GL. No. 101
Date
Description
PR DR CR Balance
2016
Jun 1 Opening Balance
4,200 DR
Jun 1
J1
900 3,300 DR
Jun 3
J1
1,200 2,100 DR
Jun 6
J1
2,100
4,200 DR
Jun 13
J1
3,000
7,200 DR
Jun 16
J1
300
7,500 DR
Jun 23
J1
950 6,550 DR
Jun 30
J1
1,000 5,550 DR
