Question : 39.Use the following unadjusted trial balance to prepare adjusting entries, : 1244543

 

39.Use the following unadjusted trial balance to prepare adjusting entries, given the additional information below it. Assume that financial statements are prepared quarterly. Omit explanations.

 

Shayna’s Financial Services

Unadjusted Trial Balance

September 30, 20×7

Cash

$ 30,000

 

Accounts Receivable

9,600

 

Office Supplies

1,600

 

Prepaid Rent

5,400

 

Office Furniture

14,400

 

Accumulated Depreciation–Office Furniture

 

$     600

Accounts Payable

 

22,200

Unearned Revenue

 

3,000

Common Stock

 

30,600

Consulting Revenue

 

18,000

Salaries Expense

11,000

 

Insurance Expense

    2,400

 

 

$74,400

$74,400

 

a. Of the revenue received in advance, 60 percent remained unearned on September 30.

b. The office furniture has an estimated 12-year useful life and zero value at the end of that

    time. Record depreciation for the quarter.

c. Salaries earned, but unpaid, totaled $2,600.

d. The Prepaid Rent applies to the six months beginning July 1, 20×7.

e. Office supplies on hand totaled $600 at the end of the quarter.

f. Services performed but not yet billed or recorded amount to $3,000.

 

General Journal

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40.Prepare year-end adjusting entries for each of the following situations:

 

a. The Store Supplies account showed a beginning debit balance of $400 and purchases of $2,800. The ending debit balance was $800.

b. Depreciation on buildings is estimated to be $7,300.

c. A one-year insurance policy was purchased for $2,400. Nine months have passed since the purchase.

d. Accrued interest on notes payable amounted to $200.

e. The company received a $9,600 advance payment during the year on services to be performed. By the end of the year, one-third of the services had been performed.

f. Payroll for the five-day workweek, to be paid on Friday, is $10,000. The last day of the period is a Tuesday.

g. Services totaling $920 had been performed but not yet billed or recorded.