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Part 1

3 adjusting journal entries effecting prepaid expenses

  • Reflect supply utilization by debiting supply expense for $1,500 and crediting supplies inventory for $1,500
  • Reflect insurance utilization by debiting insurance expense for $50 and crediting prepaid insurance for $50.
  • Reflect utilization of equipment by debiting depreciation expense for $40 and crediting accumulated depreciation $40.

1 adjusting entry effecting unearned revenues

  • Reflect revenue earned in October by debiting unearned revenue for $400 and crediting service revenue for $400.

1 adjusting entry effecting accrued revenues

  • Reflect revenue not previously recorded by debiting accounts receivable for $200 and crediting service revenue for $200.

2 adjusting entries effecting accrued expenses

  • Reflect interest expense not previously recorded by debiting interest expense for $50 and crediting interest payable for $50.
  • Reflect salaries expense earned but not paid out yet by debiting salaries expense for $1,200 and crediting salaries payable for $1,200.

Part 2

Using the input from Part 1, create a new Trial Balance:

  • Select “Reports” from the menu along the left-hand side.
  • In the Go to report search-box, type Trial Balance.
  • Select Trial Balance from the suggestions drop-down.
  • Input directly or select the dates to run the report.  These dates should correspond to the Sierra Corporation data you input.
  • Select the Excel tab at the top left of your screen to export this information into a Microsoft® Excel® document.

 

 

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