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:

Salespersons

Individuals who sell products or services, often working on commission and focusing on meeting sales targets.

Administrative Office

A physical or virtual location where administrative and managerial tasks of an organization are carried out, including paperwork, planning, and coordination activities.

Salaries

Regular payments made by employers to employees, usually monthly, for their professional services.

Indirect

In accounting and finance, refers to costs or expenses that are not directly tied to a specific product, service, or department but are necessary for business operations.