Selected accounts of Urdu Company are shown below.

Supplies
Beg. Bal	800	10 ⁄ 31	470

Salaries and Wages Expense
10 ⁄ 15	800
10 ⁄ 31	600

Unearned Service Revenue
10 ⁄ 31	400	10 ⁄ 20	650

Service Revenue
		10 ⁄ 17	2,400
		10 ⁄ 31	1,650
		10 ⁄ 31	400

Accounts Receivable
10 ⁄ 17	2,400
10 ⁄ 31	1,650

Salaries and Wages Payable
		10 ⁄ 31	600

Supplies Expense
10 ⁄ 31	470

Instructions

From an analysis of the T-accounts, reconstruct

(a) the October transaction entries, and

(b) the adjusting journal entries that were made on October 31, 2017. Prepare explanations for each journal entry

Date

Particulars

Debit ($)

Credit ($)

Oct. 15, 2017

Salaries & Wages expense

800

Cash

800

(To record payment of October 15 payroll)

Oct. 17, 2017

Account receivables

2,400

To service revenue

2,400

(To record revenue for services performed for which payment has not yet been received)

Oct. 20, 2017

Cash

650

Unearned service revenue

650

(To record receipt of cash for service not yet performed)

$3,850

$3,850

Date

Particulars

Debit ($)

Credit ($)

Oct. 31, 2017

Supplies expense

470

Supplies

470

(To record the use of supplies during October)

Oct. 31, 2017

Accounts receivables

1,650

Service revenue

1,650

(To record revenue for services performed for which payment has not yet been received)

Oct. 31, 2017

Salaries & Wages expense

600

Salaries & wages payable

600

(To record liability for accrued payroll)

Oct. 31, 2017

Unearned service revenue

400

Service revenue

400

(To reduce unearned service) revenue, account for service that has been performed)

$3,120

$3,120