djusting entries A Date Account Title Debit Credit Dec 31,2016 Salaries Expense $350 Salaries Payable $350 To record accrual of salaries expense. Note: Since there is no actual payment of the salaries expense, we will record it as salaries payable but still record a salaries expense to be included in the Dec 2016 period. B Date Account Title Debit Credit Dec 31,2016 Unearned Revenue $500 Service Revenue $500 To record adjustment of unearned revenue as service revenue. Unearned revenue are advance payment from customers, it is a liability account since there is no services performed yet by the company. If it was already performed, the adjusting entries above will be needed to recognize the earned service revenue from the advance payments. C Date Account Title Debit Credit Dec 31,2016 Insurance Expense $400 Prepaid Insurance $400 To record the expired portion of prepaid insurance. D Date Account Title Debit Credit Dec 31,2016 Interest Expense $125 Interest Payable $125 To record accrual of interest expense for the period as payable. Again, we need to recognized the interest expense as accrual of interest payable even if It is not yet paid in cash. E Date Account Title Debit Credit Dec 31,2016 Accounts Receivable $300 Service Revenue $300 To record service revenue on account. On this one, the service revenue was earned but have not yet collected any cash from the customer, therefore, we need to record it as an Accounts Receivable(collectible from the customers) and credit the Service Revenue as it was performed already to the customer. F Date Account Title Debit Credit Dec 31,2016 Supplies Expense $450 Supplies $450 To record supplies used for the period. Since the on hand supplies on Dec 31 is only 600, it should be the ending balance in our records, so we deduct it to the beginning balance which is $1,050 so we will get the $400 as the supplies expense, or the used supplies for the period.

please see the attached file.