Glow Styling unadjusted trial balance for the current year follows: Glow Styling Trial Balance December 31 Debit Credit Cash $ 4,200 Prepaid insurance 1,480 Supplies 990 Equipment 3,860 Accumulated depreciation-Equipment $ 770 Building 57,500 Accumulated depreciation-Building 3,840 Land 55,000 Unearned revenue Long-term notes payable 1,600 50,000 Common stock Retained earnings Rent revenue Fees revenue 40,000 9,860 2,400 23,400 Wages expense Utilities expense Property taxes expense Interest expense Totals 3,200 690 600 4,350 $ 131,870 $ 131,870 Additional information: a. An insurance policy examination showed $1,240 of insurance had expired. b. An inventory count showed $210 of unused supplies still available. c. Depreciation expense on equipment, $350. d. Depreciation expense on the building, $2,220. e. Accrued revenue of $200 was unrecorded and not yet received at the time the trial balance was prepared. £ An amount of $800 of the Unearned Revenue account balance (related to rent collected in advance) was earned by year-end. 3. 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 and not yet been paid. 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 and not yet been paid.
Glow Styling unadjusted trial balance for the current year follows: Glow Styling Trial Balance December 31 Debit Credit Cash $ 4,200 Prepaid insurance 1,480 Supplies 990 Equipment 3,860 Accumulated depreciation-Equipment $ 770 Building 57,500 Accumulated depreciation-Building 3,840 Land 55,000 Unearned revenue Long-term notes payable 1,600 50,000 Common stock Retained earnings Rent revenue Fees revenue 40,000 9,860 2,400 23,400 Wages expense Utilities expense Property taxes expense Interest expense Totals 3,200 690 600 4,350 $ 131,870 $ 131,870 Additional information: a. An insurance policy examination showed $1,240 of insurance had expired. b. An inventory count showed $210 of unused supplies still available. c. Depreciation expense on equipment, $350. d. Depreciation expense on the building, $2,220. e. Accrued revenue of $200 was unrecorded and not yet received at the time the trial balance was prepared. £ An amount of $800 of the Unearned Revenue account balance (related to rent collected in advance) was earned by year-end. 3. 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 and not yet been paid. 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 and not yet been paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Based on the unadjusted trial balance for Glow Styling and the adjusting information given below, prepare the adjusting journal entries for Glow Styling.
Transcribed Image Text:Glow Styling unadjusted trial balance for the current year follows:
Glow Styling
Trial Balance
December 31
Debit
Credit
Cash
$ 4,200
Prepaid insurance
1,480
Supplies
990
Equipment
3,860
Accumulated depreciation-Equipment
$ 770
Building
57,500
Accumulated depreciation-Building
3,840
Land
55,000
Unearned revenue
Long-term notes payable
1,600
50,000
Common stock
Retained earnings
Rent revenue
Fees revenue
40,000
9,860
2,400
23,400
Wages expense
Utilities expense
Property taxes expense
Interest expense
Totals
3,200
690
600
4,350
$ 131,870 $ 131,870
Transcribed Image Text:Additional information:
a. An insurance policy examination showed $1,240 of insurance had expired.
b. An inventory count showed $210 of unused supplies still available.
c. Depreciation expense on equipment, $350.
d. Depreciation expense on the building, $2,220.
e. Accrued revenue of $200 was unrecorded and not yet received at the time the trial balance
was prepared.
£ An amount of $800 of the Unearned Revenue account balance (related to rent collected in
advance) was earned by year-end.
3. 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 and not yet been paid. 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 and not yet
been paid.
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