Question : 103) Based the partial trial balance and the partial adjusted : 1212552

103) Based on the partial trial balance and the partial adjusted trial balance shown below, prepare the six missing adjusting entries. The adjusting entries should be dated December 31.

 

AccountTrial BalanceAdjusted Trial Balance

 

Debit

Credit

Debit

Credit

Accounts Receivable

101,600

 

110,000

 

Supplies

5,000

 

3,800

 

Prepaid Insurance

10,600

 

5,800

 

Accumulated Amortization

 

55,300

 

57,300

Salary Payable

 

 

 

1,500

Unearned Service Revenue

 

13,500

 

13,000

Service Revenue

 

215,900

 

224,800

Salary Expense

110,600

 

112,100

 

Insurance Expense

 

 

4,800

 

Supplies Expense

 

 

1,200

 

Amortization Expense

 

 

2,000

 

 

104) Sam Miyagi began Miyagi Landscaping in 2012. He performed his own bookkeeping using an accounting software package he purchased for that purpose. Sam selected January 31 as his year end to coincide with the slower time of year for the business. In February 2013, Sam provided his accountant, Mary Tang, with the source documents and a backup copy of the software. Mary determined the following:

 

Sam purchased a second-hand truck and trailer on February 28, 2012, in anticipation of starting Miyagi Landscaping. The vehicle stayed in Sam’s garage uninsured until April 1, 2012, which was the starting date of his business. Sam paid $12,000 for the truck; he estimates that it will have a useful life in the business of five years at which time he thinks its value will be $0. Sam debited the asset account, Truck, for the cost of the vehicle.

 

On April 1, 2012, a one-year vehicle insurance policy was purchased in the amount of $1,800. The account Prepaid Insurance was debited for the full amount.

 

Gardening supplies were purchased throughout the year. The Gardening Supplies account had a year-end balance of $24,000; a count showed $400 of supplies on hand on January 31, 2013.

 

On January 15, 2013 Sam signed a contract to do monthly lawn maintenance for the municipality starting on May 1. The six-month contract will be paid on a monthly basis in the amount of $1,500 starting May 31.

 

On January 31, Miyagi Landscaping had $2,800 still owing from customers. This amount was unrecorded in the accounting system.

 

Required:

Journalize the adjusting entries for the January 31, 2013, year end. Explanations are not required.

 

Date

Accounts

Debit

Credit