Chapter 3, Problem E3.25E

Journalizing adjusting entries and posting to T-accounts

I h unadjusted trial balance for First (.lass Maids Company, a cleaning service, is as follows:

FIRST CLASS MAIDS COMPANY

Unadjusted Trial Balance

December 31, 2016

	Balance
Account Title	Debit	Credit
Cash	$ 1.200
Office Supplies	3,000
Prepaid Insurance	700
Equipment	20.000
Accumulated Depreciation-Equipment		S 6.000
Accounts Payable		2,200
Salaries Payaole
Unearned Revenue		600
Maltos, Capital		8,100
Maltos. Withdrawals	3.000
Service Revenue		17.000
Salar.es Expense	6,000

During the 12 months ended December 31,2016, First Class Maids:

1. used office supplies of $ 1,900.
2. used prepaid insurance of $560.
3. depreciated equipment, $510.
4. accrued salaries expense of $250 that hasn’t been paid yet.
5. earned $420 of unearned revenue.

Requirements

1. Open a T-account for each account using the unadjusted balances.
2. Journalize the adjusting entries using the letter and December 31 date in the date column.
3. Post the adjustments to the T-accounts, entering each adjustment by letter. Show each accounts adjusted balance.