Concept explainers
Exercise 4.16A
Preparing reversing entries
P4
Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare
a. The company has earned $6,000 in service fees that were not yet recorded at period-end.
b. The expired portion of prepaid insurance is $3,700.
C. The company has earned $2,900 of its Unearned Service Fees account balance.
d.
e. Employees have earned but have not been paid salaries of $3,400.
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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