Chapter 3, Problem 6P

Brave Advisors Service’s trial balance on December 31, 2014, is as follows.

The following information is also available:

1. a. Ending inventory of office supplies, $264
2. b. Prepaid rent expired, $440
3. c. Depreciation of office equipment for the period, $660
4. d. Accrued interest expense at the end of the period, $550
5. e. Accrued salaries at the end of the period, $330
6. f. Service revenue still unearned at the end of the period, $1,166
7. g. Service revenue earned but unrecorded, $2,200

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 balances shown on the trial balance.
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? Which financial statement is not affected by the adjustments?