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
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