P 7. The trial balance for Best Advisors Service on December 31, 2011, is asfollows:CashAccounts ReceivableOffice SuppliesPrepaid RentOffice EquipmentAccumulated Depreciation-Office EquipmentAccounts PayableNotes PayableUnearned Service RevenueBest Advisors ServiceTrial BalanceDecember 31, 2011M. Dabrowska, CapitalM. Dabrowska, WithdrawalsService RevenueSalaries ExpenseRent ExpenseUtilities Expense$ 18,5008,2502,6621,3209,24022,00049,4004,4004,280$120,052$ 1,5405,94011,0002,97026,00272,600$120,052The following information is also available:a. Ending inventory of office supplies, $300b. Prepaid rent expired, $610c. Depreciation of office equipment for the period, $526d. Accrued interest expense at the end of the period, $570e. Accrued salaries at the end of the period, $330f. Service revenue still unearned at the end of the period, $1,166g. Service revenue earned but unrecorded, $3,100Required1. Open T accounts for the accounts in the trial balance plus the following:Interest Payable; Salaries Payable; Office Supplies Expense; DepreciationExpense-Office Equipment; and Interest Expense. Enter the balances shownon the trial balance.2. Determine the adjusting entries and post them directly to the T accounts.3. Prepare an adjusted trial balance.

These are the journal entries that are required to be prepared by a company to prepare its…

P 7. The trial balance for Best Advisors Service on December 31, 2011, is as follows: Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Best Advisors Service Trial Balance December 31, 2011 Accumulated Depreciation- Office Equipment $ 18,500 8,250 2,662 1,320 9,240 $ 1,540

P 7. The trial balance for Best Advisors Service on December 31, 2011, is as follows: Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Best Advisors Service Trial Balance December 31, 2011 Accumulated Depreciation- Office Equipment $ 18,500 8,250 2,662 1,320 9,240 $ 1,540

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

P 7. The trial balance for Best Advisors Service on December 31, 2011, is as
follows:
Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Office Equipment
Accumulated Depreciation-
Office Equipment
Accounts Payable
Notes Payable
Unearned Service Revenue
Best Advisors Service
Trial Balance
December 31, 2011
M. Dabrowska, Capital
M. Dabrowska, Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
$ 18,500
8,250
2,662
1,320
9,240
22,000
49,400
4,400
4,280
$120,052
$ 1,540
5,940
11,000
2,970
26,002
72,600
$120,052
The following information is also available:
a. Ending inventory of office supplies, $300
b. Prepaid rent expired, $610
c. Depreciation of office equipment for the period, $526
d. Accrued interest expense at the end of the period, $570
e. Accrued salaries at the end of the period, $330
f. Service revenue still unearned at the end of the period, $1,166
g. Service revenue earned but unrecorded, $3,100
Required
1. Open T accounts for the accounts in the trial balance plus the following:
Interest Payable; Salaries Payable; Office Supplies Expense; Depreciation
Expense-Office Equipment; and Interest Expense. Enter the balances shown
on the trial balance.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance.

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Step 2: (1) Open the T-accounts with beginning balances:

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Step 3: (2) Prepare the adjusting entries:

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Step 4: Post the adjusting entries to ledger accounts:

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