The adjusted trial balance of University Book Store as of No

The adjusted trial balance of University Book Store as of November 30, 2019, after the firm\'s first month of operations, appears below Appropriate adjustments have been made for the following items a. Supplies used during the month, $5,800 b. Expired rent for the month, $7,000 c. Depreciation expense for the month, $1,900 UNIVERSITY BOOK STORE Adjusted Trial Balance November 30, 2019 Account Name Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Ruby Darbandi, Capital Ruby Darbandi, Drawing Fees Income Depreciation Expense-Equipment Rent Expense Salaries Expense Supplies Expense Utilities Expense Totals $ 46,150 7,624 9,200 42,000 55,000 $ 1,900 18,000 83,674 8,000 97,100 1,900 7,000 17,000 5, 800 1,000 $200,674 $200,674 Required 2. Record the adjusting entries in the Adjustments columns 3. Complete the Trial Balance columns of the worksheet prior to making the adjusting entries. Analyze: What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

Solution

THE UNIVERSITY BOOKSTORE Worksheet (Partial) Month Ended November 30,2019 Account Name Trail Balance Adjustments Adjusted Trail balance Debit Credit Debit Credit Debit Credit Cash      46,150       46,150 Accounts Receivable        7,624          7,624 Supplies      15,000 5,800          9,200 Prepaid Rent      49,000 7,000       42,000 Equipment      55,000       55,000 Accumulated Depreciation -Equipment 1,900           1,900 Accounts Payable      18,000         18,000 Ruby Darkson, Capital      83,674         83,674 Ruby Darkson, Drawing        8,000          8,000 Fees Income      97,100         97,100 Depreciation Expense -Equipment 1,900          1,900 Rent Expense 7,000          7,000 Salaries Expense      17,000       17,000 Supplies Expense 5,800          5,800 Utilities Expense        1,000          1,000 Totals 1,98,774 1,98,774    2,00,674     2,00,674 Balance of Prepaid rent prior to the adjusting entry for expired rent = 42,000+7000 = 49,000