North Star prepared the following unadjusted trial balance a

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

3. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31 Prepaid Rent Rent Expense Beg. Bal. Beg. Bal End. Bal. End. Bal Accumulated Depreciation-Equipment Depreciation Expense Beg. Bal. Beg. Bal End. Bal. End. Bal. Accounts Payable Utilities Expense B. al. End. Bal. End. Bal. Income Tax Payable ncome lax Expense Bg. Bl. End. Bal. End. Bal.

Solution

Adjusting journal entries are recorded in the T-accounts as mentioned below:

Adjusted Trial Balance is prepared by taking the closing balances from the general ledger.

Prepaid Rent
Particulars	Amount	Particulars	Amount
Beg Balance	2,500	a.	1,250
	2,500		1,250
Ending balance	1,250
Rent Expense
Particulars	Amount	Particulars	Amount
Beg Balance	0
a.	1,250
	1,250
Ending balance	1,250
Depreciation Expense
Particulars	Amount	Particulars	Amount
Beg Balance	0
b.	1,050
	1,050		0
Ending balance	1,050
Accumulated dep-Equipment
Particulars	Amount	Particulars	Amount
		Beg Balance	1,050
		b.	1,050
	0		2,100
		Ending balance	2,100
Utilities Expense
Particulars	Amount	Particulars	Amount
Beg Balance	13,000
c.	9,500
	22,500		0
Ending balance	22,500
Accounts Payable
Particulars	Amount	Particulars	Amount
		Beg Balance	1,050
		c.	9,500
			10,550
		Ending balance	10,550
Income tax expense
Particulars	Amount	Particulars	Amount
Beg Balance	0
d.	440
	440		0
Ending balance	440
Income tax payable
Particulars	Amount	Particulars	Amount
		Beg Balance	0
		d.	440
			440
		Ending balance	440