The unadjusted trial balance for Sheffield Corp. is shown below. SHEFFIELD CORP.
Trial Balance
October 31, 2017
Debit Credit
Cash $15,220
Supplies 2,960
Prepaid Insurance 690
Equipment 5,290
Notes Payable $5,290
Accounts Payable 2,270
Unearned Service Revenue 1,990
Common Stock 11,040
Retained Earnings 0
Dividends 560
Service Revenue 13,090
Salaries and Wages Expense 4,000
Rent Expense 4,960
Supplies on hand at October 31 total $500.
Expired insurance for the month is $100.
Depreciation for the month is $50.
Services related to unearned service revenue in October worth $600 were performed.
Services performed but not recorded at October 31 are $300.
Interest accrued at October 31 is $95.
Accrued salaries at October 31 are $1, 625.
Instructions:
Prepare the adjusting entries for the items above.

1Oct.31

Dr Supplies expense $2,460

Cr Supplies $2,460

2. Oct.31

Dr Insurance Expense$100

Cr Prepaid insurance $100

3. Oct.31

Dr Depreciation expense$50

Cr Accumulated depreciation $50

4Oct.31

Dr Unearned revenue$600

Cr Service revenue $600

5Oct.31

Dr Accounts receivable$300

Cr Service revenue $300

6Oct.31

DrInterest expense$95

Cr Interest payable $95

7Oct.31

Dr Salaries expesne$1,625

Cr Salaries payable $1,625

Explanation:

Preparation of the adjusting entries

1Oct.31

Dr Supplies expense $2,460

[2,960-500]

Cr Supplies $2,460

[Being To record supplies expense]

2. Oct.31

Dr Insurance Expense$100

Cr Prepaid insurance $100

[Being To record insurance expense]

3. Oct.31

Dr Depreciation expense$50

Cr Accumulated depreciation $50

[Being To record depreciation expense]

4Oct.31

Dr Unearned revenue$600

Cr Service revenue $600

[Being To record revenue from unearned]

5Oct.31

Dr Accounts receivable$300

Cr Service revenue $300

[Being To record accrued revenues]

6Oct.31

DrInterest expense$95

Cr Interest payable $95

[Being To record accrued interest expense]

7Oct.31

Dr Salaries expesne$1,625

Cr Salaries payable $1,625

[Being To record salaries expense]