Answer:
Explanation:
The adjusting journal entries are as follows:
1. Supplies Expense Dr $3,000 ($2,000 + $4,500 - $3,500)
To Supplies $3,000
(Recording supplies used)
2. Insurance Expense Dr $2,000
To Prepaid Insurance $2,000
(Adjusting prepaid insurance)
3. Salary Expense Dr $16,000
To Salaries Payable $16,000
(Adjusting accrued salaries)
4. Unearned Revenue Dr $1,500
To Service Revenue $1,500
(Recognizing revenue earned from unearned revenue)