Chapter 3, Problem 3P

Kinokawa Consultants Company’s trial balance on December 31, 2014, follows.

The following information is also available:

1. a. Ending inventory of office supplies, $86
2. b. Prepaid rent expired, $700
3. c. Depreciation of office equipment for the period, $600
4. d. Interest accrued on the note payable, $600
5. e. Salaries accrued at the end of the period, $200
6. f. Service revenue still unearned at the end of the period, $1,410
7. g. Service revenue earned but not billed, $600

REQUIRED

1. 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 account balances.
2. 2. Determine the adjusting entries and post them directly to the T accounts.
3. 3. Prepare an adjusted trial balance.
4. 4. ACCOUNTING CONNECTION ▶ Which financial statements do each of the above adjustments affect? What financial statement is not affected by the adjustments?