Lim Company records all prepayments in income statement accounts. At April 30, the trial balance…

Lim Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue $9,200, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming (a) $1,000 of supplies on hand (b) $2,000 of service revenue should be reported as unearned.View Solution:
Lim Company records all prepayments in income statement accounts

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