Make the necessary adjustments given the information items a

Make the necessary adjustments, given the information items a through g Once the worksheet is completed make the gen. journal closing entries Trial Balance -Adjustments Adjusted Trial Balance Inc. Statement Balance Sheet Credit adj. ref Debit Credit Debit Credit Debit Credit Debit Credit Debit 20000 24000 800 400 6300 42000 10 Cash 11 Accounts receivable 12 Supplies Prepaid Insurance 14 Prepaid Rent 15 Equipment 16 Accum. Depreciation, Equip 17 Accounts Payable 18 Salary Payable 19 Unearned Service revenue 20 Betty, Jones, Capital 21 Betty, Jones, Withdrawals 22 Service Revenue 23 Depreciation Expense 24 Supplies Exp 25 Salary Expense 26 Utilities Exp 27 Insurance Exp 28 Rent Exp 29 30 Profit/Loss 31 18500 14600 750 52400 41000 109050 f and g 56000 4800 Totals 195300 195300 Totals Our current insurance policy wll expire after 6 months into next year. Insurance Costs us 50 per month Atyear end we owe our employees $800 in accrued compensation. The equipment is estimated to last 12 years. All the equipment was bought a fewyears ago Ayear-end inventory reveals there is now 85 supplies on hand The office we rent has been in use all 12 months this pastyear and the monthly rental rate has been 420 per month for many years $425 of the Unearned serv. Rev. account balance has now been earned $1,700 of revenue has been earned but not yet recorded nor collected 37 f 38 39 40 41 42

Solution

1.

2.

Worksheet for trial balance
	Trial balance	Adjustments	Adjusted Trial Balance	Inc.Statement	Balance Sheet
Account	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	20000				20000				20000
Accounts Receivable	24000		1700		25700				25700
Supplies	800			715	85				85
Prepaid Insurance	400			100	300				300
Prepaid Rent	6300				6300				6300
Equipment	42000				42000				42000
Accumulated Depreciation - Equipment		18500		3500		22000				22000
Accounts Payable		14600		5040		19640				19640
Salary Payable				800		800				800
Unearned Service Revenue		750	725			25				25
Betty Jones, Capital		52400				52400				51920
Betty Jones, Withdrawal	41000				41000
Service Revenue		109050		2425		111475		111475
Depreciation Expense			3500		3500		3500
Supplies Expense			715		715		715
Salary Expense	56000		800		56800		56800
Utilities Expense	4800				4800		4800
Insurance Expense			100		100		100
Rent Expense			5040		5040		5040
Total	195300	195300	12580	12580	206340	206340	70955	111475	94385	94385
Income Summary							40520
Grand Total	195300	195300	12580	12580	206340	206340	111475	111475	94385	94385
a. Prepaid insurance should be $300 (%50 x 6). Therefore expired insurance will be $400 - $300 = $100
b. Salary payabel to be credited with $800 and salary expense debited with the amount.
c. Depreciation expense - $42,000 / 12 = $3,500
d. Supplies expense $715 ($800 - $85)
e. Rent expense for office = $420 x 12 = $5,040
f. Unearned Service Revenue to be debited and Service Revenue to be credited   with $425
g. Accounts Receivable to be debited and Service revenue to be credited   with $1,700.