The adjustments columns of the worksheet for Mears Company are shown below.
|
Adjustments |
||
|
Account Titles |
Debit |
Credit |
|
Accounts Receivable |
600 |
|
|
Prepaid Insurance |
400 |
|
|
Accumulated Depreciation |
900 |
|
|
Salaries Payable |
500 |
|
|
Service Revenue |
600 |
|
|
Salaries Expense |
500 |
|
|
Insurance Expense |
400 |
|
|
Depreciation Expense |
900 |
|
|
2,400 |
2,400 |
Instructions
(a) Prepare the adjusting entries.
(b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.