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Question: Hinson Company records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare adjusting entries for the company as of August 31, the end of the company's fiscal year.
a. The company has earned $5,000 in service fees that were not yet recorded at period-end.
b. The expired portion of prepaid insurance is $2,700.
c. The company has earned $1,900 of its Unearned Service Fees account balance.
d. Depreciation expense for office equipment is $2,300.
e. Employees have earned but have not been paid salaries of $2,400. Prepare any necessary reversing entries for the accounting adjustments a through e assuming that the company uses reversing entries in its accounting system.
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