## Answers

No | Date | Account Titles and Explanation | Debit | Credit |

1 | Dec. 31 | Supplies expense | $2,210 | |

Supplies | $2,210 | |||

( To record supplies expense) | ||||

2 | Dec. 31 | Insurance expense | $125 | |

Prepaid insurance | $125 | |||

( To record insurance expense) | ||||

3 | Dec. 31 | Depreciation expense | $60 | |

Accumulated depreciation - Equipment | $60 | |||

( To record depreciation expense) | ||||

4 | Dec. 31 | Unearned revenue | $940 | |

Service revenue | $940 | |||

( To record unearned revenue) | ||||

5 | Dec. 31 | Accounts receivable | $230 | |

Service revenue | $230 | |||

( To record service revenue) | ||||

6 | Dec. 31 | Interest expense | $70 | |

Interest payable | $70 | |||

( To record interest expense) | ||||

7 | Dec. 31 | Salaries expense | $1,480 | |

Salaries payable | $1,480 | |||

( To record salaries expense) |

Supplies expense = Supplies beginning - Supplies ending

= 2,770-560

= $2,210

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