Question : 200. Black Company’s unadjusted and adjusted trial balances December 31 of : 1256813

 

200. Black Company’s unadjusted and adjusted trial balances on December 31 of the current year are as follows

 

 

Unadjusted Trial Balance

Adjusted Trial Balance

Cash

4,000

 

4,000

 

Prepaid insurance

1,600

 

1,200

 

Equipment

9,000

 

9,000

 

Accumulated depreciation –

Equipment

 

 

900

 

 

1,800

Salaries payable

 

 

 

1,000

Unearned repair fees

 

2,500

 

600

Repair fees earned

 

10,000

 

11,900

Salaries expense

3,500

 

4,500

 

Depreciation expense – Equip

 

 

900

 

Insurance expense

700

 

1,100

 

Common stock

 

5,000

 

5,000

Retained earnings

 

400

 

400

 

18,800

18,800

20,700

20,700

 

Present the four adjusting journal entries that were recorded by Black Company.

 

 

201. In general journal form, record the December 31 adjusting entries for the following transactions and events. Assume that December 31 is the end of the annual accounting period.

a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy that was purchased on October 1 of the current year.

b. The Office Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand.

c. On November 1 of the current year, Rent Earned was credited for $1,500. This amount represented the rent earned for a three-month period beginning November 1.

d. Estimated depreciation on office equipment is $600.

e. Accrued salaries amount to $400.

 

 

 

 

202. Based on the following information, prepare the adjusting journal entries for Bella’s Beauty Salon.  Bella’s Beauty Salon’s unadjusted trial balance for the current year follows:

 

 

BELLA’S BEAUTY SALON

Trial Balance

December 31

Cash

$  4,200

 

Prepaid insurance

1,480

 

Shop supplies

990

 

Shop equipment

3,860

 

Accumulated depreciation – shop equipment

 

$    770

Building

57,500

 

Accumulated depreciation – building

 

3,840

Land

55,000

 

Unearned rent

 

1,600

Long-term notes payable

 

50,000

Common stock

 

10,000

Retained earnings

 

39,860

Rent earned

 

2,400

Fees earned

 

23,400

Wages expense

3,200

 

Utilities expense

690

 

Property taxes expense

600

 

Interest expense

4,350

 

Totals

$131,870

$131,870

Additional information:

a. An insurance policy examination showed $1,240 of expired insurance

b. An inventory count showed $210 of unused shop supplies still available

c. Depreciation expense on shop equipment, $350

d. Depreciation expense on the building, $2,220

e. A beautician is behind on space rental payments and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared.

f. $800 of the Unearned Rent account balance was earned by year-end.

g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.

h. Three months’ property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.

i. One month’s interest on the note payable, $600, has accrued but is unrecorded.