ACCT 2301 Lecture Notes - Lecture 2: Accounts Payable, Accrual, Trial Balance
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P4-2A,Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. | |||||||||||||||||||||||||
Ken Lumas started his own consulting firm, LumasConsulting, on June 1, 2014. The trial balance at June30 is as follows. | |||||||||||||||||||||||||
LUMAS CONSULTING | |||||||||||||||||||||||||
Trial Balance | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Debit | Credit | ||||||||||||||||||||||||
Cash | $6,850 | ||||||||||||||||||||||||
Accounts Receivable | 7,000 | ||||||||||||||||||||||||
Prepaid Insurance | 2,880 | ||||||||||||||||||||||||
Supplies | 2,000 | ||||||||||||||||||||||||
Equipment | 15,000 | ||||||||||||||||||||||||
Accounts Payable | $4,230 | ||||||||||||||||||||||||
Unearned Service Revenue | 5,200 | ||||||||||||||||||||||||
Common Stock | 22,000 | ||||||||||||||||||||||||
Service Revenue | 8,300 | ||||||||||||||||||||||||
Salaries and Wages Expense | 4,000 | ||||||||||||||||||||||||
RentExpense | 2,000 | ||||||||||||||||||||||||
$39,730 | $39,730 | ||||||||||||||||||||||||
In addition to those accounts listed onthe trial balance, the chart of accounts for Lumas alsocontains the following accounts: | |||||||||||||||||||||||||
Accumulated Depreciation |
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?