Adjusting Entries

[t0ce]

1. Supplies on hand at June 30 are $600.
2. A utility bill for $150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $2,500 of unearned service revenue has been earned at the end of the month.
5. Salaries of $2,000 are accrued at June 30.
6. The office equipment has a 5-year life with no salvage value. It is being depreciated at $250
per month for 60 months.
7. Invoices representing $1,000 of services performed during the month have not been recorded
as of June 30.

I don't understand what I am supposed to do for each of these.

The supplies balance had a debit balance of $2000. I know that the $600 supplies on hand brings Supplies Expense to $1400 and Supplies to $1400. I dont now how the rest go though.. Can anyone help?

 

[kirby]

"Don't understand. what to do..."

I knew it - the teacher has been ditching class and nobody's learning nothing!

 

[t0ce]

Sorry for asking. It's online and can be difficult to understand.

 

[kirby]

Your file is gone so we only have your 7 item list
So - we do have the info for the supplies question. The books RIGHT NOW show a debit balance of $2,000. But now you check that against reality.The reality is that you really only have $600 in supplies. So your entry is to reduce the Supplies Asset account (CR to Supplies $1,400 and your DEBIT goes to Supplies Expense (cause you used up $1,400 in Supplies.
You do the same process for each of the others.So if it says something is "unrecorded" then you post the entry to record it .
ALSO
When you said that the reason for not understanding is "it's online" then it seems to me 1) the online method has not proven to be a good way for you personally to learn the material and 2) since you mentioned it - you seem to recognize that online school is not the same as a brick and mortar school. So - I want you to consider if this method is effective for you given the time, effort and money you are putting in to it.And recognize that many employers are still "old school" enough to value a brick and mortar diploma more than an online one.