If you did not do Exercise 2-15 , you can complete this Exercise by creating T- accounts for the accounts and balances given in the trial balance at December 31, 2013, shown below.

Required
1. Open these new T-accounts: Accumulated Amortization-Equipment; Accumulated Amortization-Furniture; Salaries Payable; Amortization Expense-Equipment; Amortization Expense-Furniture; Salaries Expense; Supplies Expense.
2. Prepare an adjusted trial balance at December 31. Set up columns for adjustments and for the adjusted trial balance as illustrated in Exhibit 3-10 on page 141.
3. At December 31, the company gathers the following information for the adjusting entries:
a. Accrued service revenue, $400.
b. Earned $667 of the service revenue collected in advance on December 21.
c. Supplies remaining on hand at December 31, $100.
d. Amortization expense-equipment, $33; furniture, $100.
e. Accrued $500 expense for the secretary's salary.
4. Make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31.
5. Journalize and post the adjusting entries into the T-accounts. Label each adjusting amount as Adj. and an account balance as Bal.
6. Prepare the income statement and statement of owner's equity of Kerr Consulting for the month ended December 31, 2013, and prepare the balance sheet at that date.

Transcribed Image Text:

KERR CONSULTING Unadjusted Trial Balance December 31, 2013 $ 27,850 Cash Accounts receivable 500 Supplies 500 Equipment 2,000 Furniture 6,000 $ 6,100 Accounts payable Unearned revenue 2,000 30,000 Alex Kerr, capital 2,000 Alex Kerr, withdrawals Service revenue 4,000 Rent expense 3,000 Utilities expense 250 $ 42,100 Total $42,100