The unadjusted trial balance of sandhill exposure inc. had these balances for the following select accounts: supplies $3,500, unearned service revenue $8,450, and prepaid rent $1,600.at the end of the period,1. a count showed $640 of supplies on hand.2. services of $3,300 had been performed related to the unearned revenue account3. one month’s worth of rent, worth $480, had been consumed by sandhill exposure. record the required adjusting entries related to these events.

1. Cost of goods manufactured A/c Dr.  $2,860

              To Supplies                                               $2,860

2. Unearned Revenue A/c Dr.                   $3,300

                   To Revenue A/c                                    $3,300

3. Rent Expense A/c Dr.                            $480

        To Prepaid Rent A/c                                           $480  

Explanation:

As for the provided information, all the materials consumed during the period, expenses consumed, revenues earned shall be adjusted to the relevant current period.

1. All the supplies are consumed and only $640 of supplies are in hand, assuming when the supplies were bought it was recorded as inventory the supplies consumed during the year shall be charged as expense. For this entry will be: for the amount = $3,500 - $640 = $2,860

Cost of goods manufactured A/c Dr.    $2,860

              To Supplies                                              $2,860

2. Out of total unearned revenue recorded as liability the revenue which is earned shall be equal to amount of services provided till date.

Adjusting entry will be:

Unearned Revenue A/c Dr.                 $3,300

                   To Revenue A/c                               $3,300

3. Out of the total prepaid rent the rent related to current period, which is consumed shall be treated as expense for the period.

Adjusting entry will be:

Rent Expense A/c Dr.                          $480

        To Prepaid Rent A/c                                  $480

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