2 Questions about Trial Balance

1. Refer to the trial balance for
Morrell, Inc.

According to contracts, $4,810 of Unearned Service
Revenue has been earned in July. Which of the following is the correct amount
of Service Revenue to be reported in the July income statement?

2. On July1, Morrell paid four months in advance for insurance.  Which of the following is included in the adjusting entry at July 31?  

Morrell, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows:

	Debit	Credit
Cash	$12,920
Accounts Receivable	9,620
Supplies	1,300
Prepaid Insurance	3,120
Equipment	26,000
Accumulated Depreciation – Equipment		$10,400
Unearned Service Revenue		6,500
Capital Stock		7,190
Retained Earnings		23,400
Dividends	1,560
Service Revenue		16,510
Wages and Salaries Expense	7,800
Utilities Expense	380
Rent Expense	1,300
	$64,000	$64,000