Chapter 3, Problem P3.37APGA

Using the worksheet to record the adjusting journal entries

Learning Objective 6

Greavy Theater Production Company’s partially completed worksheet as of December 31, 2018, follows.

GREAVY THEATER PRODUCTION COMPANY
Worksheet
December 31, 2018
Account Names	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$4,300
Accounts Receivable	5,900
Office Supplies	1,900
Prepaid insurance	4,550
Equipment	30,000
Accumulated Depreciation—Equipment		$7,600
Accounts Payable		3,600
Salaries Payable
Gteavy, Capital		21,950
Gteavy, Withdrawals	30,500
Service Revenue		77,000
Depreciation Expense—Equipment
Supplies Expense
Utilities Expense	$500
Salaries Expense	27,500
Insurance Expense
Total	$110,150	$110,150

Adjustment data at December 31 follow:

1. As of December 31, Greavy had performed $500 of service revenue but has not yet billed customers.
2. At the end of the month, Greavy had $700 of office supplies remaining.
3. Prepaid Insurance of $3,900 remained.
4. Depreciation expense, $4 000.
5. Accrued salaries expense of $200 that hasn’t been paid yet.

Requirements

1. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.