Provide the Adjusting Entries to Account for the Differences Between

question 162

Essay

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.
\begin{array}{l}\text {                                                                                           Adjusted }\\\begin{array} { l c c c c c } & { \text { Trial Balance } } && { \text { Trial Balance } } \\& \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \\\hline \text { Supplies } & 325 & & 175 & \\\text { Prepaid Insurance } & 800 & & 500 & \\\text { Equipment } & 8,000 & & 8,000 & \\\text { Accum. Dep. } & & 700 & & 1,200 \\\text { Service Fees } & & 1,200 & & 1,200 \\\text { Depreciation Exp. } & & & 500 & \\\text { Telephone Exp. } & 100 & & 100 & \\\text { Salaries Exp. } & 375 & & 375 & \\\text { Insurance Expense } & & & 300 &\end{array}\end{array}

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, available for distribution or reinvestment.

Bonds Payable

A financial accounting term used to describe the amounts due to be paid by an issuer to the bondholders at the bond's maturity date.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's profitability.