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

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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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