Chapter 3, Problem E3.25E

Journalizing adjusting entries and posting to T-accounts

Learning Objective 3

3. Office Supplies bal. S300 DR

The unadjusted trial balance for Al Mopped Up Company, a cleaning service, is as follows:

ALL MOPPED UP COMPANY Unadjusted Trial Balance December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$800
Office Supplies	2,000
Prepaid Insurance	600
Equipment	30,000
Accumulated Depreciation—Equipment		$2,000
Accounts Payable		2,400
Salaries Payable		0
Unearned Revenue		700
Jane, Capital		15,300
Jane, Withdrawals	5,000
Service Revenue		25,000
Salaries Expense	7,000
Supplies Expense	0
Depreciation Expense—Equipment	0
Insurance Expense	0
Total	$45,400	$45,400

During the 12 months ended December 31, 2018, All Mopped Up:

1. used office supplies of $1,700.
2. used prepaid insurance of SS80.
3. depreciated equipment, $500.
4. accrued salaries expense of S310 that hasn’t been paid yet.
5. earned $400 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.