Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

29E_2

Expert-verified
Horngren'S Financial And Managerial Accounting
Found in: Page 167

Short Answer

Question :The worksheet of Best Jobs Employment Service follows but is incomplete.The following data at April 30, 2018, are given for Best Jobs Employment Service: a. Service revenue accrued, $700. b. Office supplies used, $300. c. Depreciation on equipment, $1,300. d. Salaries owed to employees, $1,400. Requirements 1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters a through d to label the four adjustments. 2. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. 3. Prepare each adjusting journal entry calculated in Requirement 1. Date the entries, and include explanations

Worksheet is as follows:

BEST JOBS EMPLOYMENT SERVICE

Worksheet

April 30, 2018

Account Names

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$1,100

$1,100

Accounts Receivable

4,100

(a)

$700

4,800

Office Supplies

1,200

(b)

$300

900

Equipment

32,700

32,700

Accumulated Depreciation—Equipment

13,900

(c)

$1,300

$15,200

Salaries Payable

(d)

$1,400

1,400

Common Stock

25,200

25,200

Dividends

5,300

5,300

Service Revenue

9,000

(a)

$700

9,700

Salaries Expense

2,200

(d)

$1,400

3,600

Rent Expense

1,500

1,500

Depreciation Expense—Equipment

(c)

$1,300

1,300

Supplies Expense

(b)

$300

300

Total

$48,100

$48,100

$3,700

$3,700

$51,500

$51,500

See the step by step solution

Step by Step Solution

Step-by-Step-SolutionStep1: Explanation on Adjusted Trial Balance

Adjusted trial balance is prepared after the journalizing and posting of adjusting entries in the books of accounts.

Step2: Explanation on Balance

As per the adjusted trial balance, total debits and credits are equals to $51,500.

Most popular questions for Business-studies Textbooks

Question : The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow ANNISTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2018 Adjustment data at December 31 follow Account Title Prepaid Rent Cash Debit Credit Accounts Receivable Office Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense—Equipment Advertising Expense Supplies Expense Total Balance $ 7,600 $ 69,000 $ 69,000 22,000 43,800 3,100 15,300 19,700 2,900 1,800 $ 3,900 2,900 9,900 3,300 1,800 a. On December 15, Anniston contracted to perform services for a client receiving $3,100 in advance. Anniston recorded this receipt of cash as Unearned Revenue. As of December 31, Anniston has completed $2,100 of the services. b. Anniston prepaid two months of rent on December 1. (Assume the Prepaid Rent balance as shown on the unadjusted trial balance represents the two months of rent prepaid on December 1.) c. Anniston used $750 of office supplies. d. Depreciation for the equipment is $850. e. Anniston received a bill for December’s online advertising, $1,100. Anniston will not pay the bill until January. (Use Accounts Payable.) f. Anniston pays its employees on Monday for the previous week’s wages. Its employees earn $3,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Anniston agreed to provide a four-month air system check (beginning October 1) for a customer for $3,400. Anniston has completed the system check every month, but payment has not yet been received and no entries have been made. Requirements 1. Journalize the adjusting entries on December 31. 2. Using the unadjusted trial balance, open the T-accounts with the unadjusted balances. Post the adjusting entries to the T-accounts. 3. Prepare the adjusted trial balance. 4. How will Anniston Air Purification System use the adjusted trial balance?

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.