Prepare adjusting journal entries and an adjusted trialbalance.
Ad MenAdvertising, Inc.
Trial Balance
November 30, 2012 Account Debit Credit Cash $ 30,100 Accounts Receivable 22,800 Prepaid Insurance 2,700 Supplies 1,200 Equipment 59,000 Accumulated Depreciation, Equipment $ 50,000 Accounts Payable 3,100 Salaries Payable Unearned Service Revenue 2,900 Common Stock 25,000 Retained Earnings 25,300 Dividends 1,000 Service Revenue 13,900 Salaries Expense 3,400 Insurance Expense Depreciation Expense, Equipment Utilities Expense Supplies Expense Total $120,200 $120,200
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?
Prepare adjusting journal entries and an adjusted trialbalance.
| Ad MenAdvertising, Inc. Trial Balance November 30, 2012 | ||
| Account | Debit | Credit |
| Cash | $ 30,100 | |
| Accounts Receivable | 22,800 | |
| Prepaid Insurance | 2,700 | |
| Supplies | 1,200 | |
| Equipment | 59,000 | |
| Accumulated Depreciation, Equipment | $ 50,000 | |
| Accounts Payable | 3,100 | |
| Salaries Payable | ||
| Unearned Service Revenue | 2,900 | |
| Common Stock | 25,000 | |
| Retained Earnings | 25,300 | |
| Dividends | 1,000 | |
| Service Revenue | 13,900 | |
| Salaries Expense | 3,400 | |
| Insurance Expense | ||
| Depreciation Expense, Equipment | ||
| Utilities Expense | ||
| Supplies Expense | ||
| Total | $120,200 | $120,200 |
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?
Related questions
On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.
| Debits | Credits | |||
| Cash | $4,795 | Accumulated depreciation | $1,000 | |
| Accounts Receivable | 2,320 | Accounts Payable | 6,800 | |
| Supplies | 1,000 | Unearned Service Revenue | 400 | |
| Equipment | 40,000 | Salaries Payable | 550 | |
| Common Stock | 11,000 | |||
| Retained Earnings | 28,365 | |||
| $48,115 | $48,115 |
During November the followingsummary transactions were completed.
Nov. 8 | Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November. |
10 | Received $1,400 cash from customers in payment of account. |
11 | Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30. |
12 | Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000. |
15 | Received credit from Midwest Wholesale Supply for merchandisereturned $200. |
19 | Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12. |
20 | Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15th.) |
22 | Received $1,300 cash for services performed in November. |
25 | Purchased equipment on account $3,000. |
27 | Purchased supplies on account $1,300. |
28 | Paid creditors $2,500 of accounts payable due. |
29 | Paid November rent $300. |
29 | Paid salaries $1,100. |
29 | Performed services on account and billed customers for servicesprovided $1,900. |
29 | Received $550 from customers for services to be provided in thefuture. |
Adjustment data:
1. | Supplies on hand are valued at $1,600. |
2. | Accrued salaries payable as of 11/30 are $500. |
3. | Depreciation for the month is $750. |
4. | $650 of the unearned service revenue has not been earned bymonth end. |
Instructions
Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.
Cash | |
| |
| |
Accounts Receivable | |
Supplies | |
Store Equipment | |
| Accumulated Depreciationâ Store Equipment | |
Accounts Payable | |
| Unearned Service Revenue | |
Salaries Payable | |
Common Stock | |
Retained Earnings | |
General Ledger (Continued)
Income Summary | |
