On December 31, 2014, the following unadjusted trial balance was prepared, and the following data were accumulated to assist the accountant in preparing the adjusting entries and adjusted trial balance for Spur Publishing, owned by Kathleen Spur. When the trial balance did not balance, the records were reviewed and errors were identified.

a. The purchase of supplies on February 1, 2014, was incorrectly posted as a $650 debit to Supplies Expense and a $650 debit to Prepaid Supplies. Supplies used in 2014 were valued at $9,420.
b. The one-year insurance policy was purchased and incorrectly fully expensed on March 1, 2014. It is the only policy in Insurance Expense.
c. The $230 November hydro payment was incorrectly posted as a debit to Cash and a credit to Utilities Expense.
d. A $15,000 deposit for a contract beginning in January 2015 was incorrectly recorded as revenue on December 15, 2014.
e. As at December 31, 2014, $45,875 in fees was earned but unbilled. Of the unearned revenue recorded in the unearned revenue account, $30,000 was earned in December.
f. Spur Publishing has 15 employees who have a combined daily salary of $6,700.
Year-end falls halfway through a two-week pay period. Assume that all employees worked every day during that period.
g. The vehicle was purchased in 2013 and has an estimated useful life of 10 years. The building has an estimated life of 20 years. Use the straight-line method for calculating depreciation.
Instructions
1. Correct any identified errors by creating both an entry to remove the error and a correcting journal entry.
2. Determine the balances of the accounts affected by the correcting entries and prepare another unadjusted trial balance.
3. Journalize the year-end adjusting entries. Add additional accounts as needed.
4. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. Assume no additional investments during the period.

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Spur Publishing Unadjusted Trial Balance December 31, 2014 Debit Balances 46,850 64,480 11,730 17,900 Credit Balances Cash. Accounts Receivable Prepaid Supplies Vehicle Accumulated Depreciation Vehicle .-.-.... Building Accumulated Depreciation Building. .. .-.. Land Accounts Payable Unearned Revenue Kathleen Spur, Capital Kathleen Spur, Withdrawals Publishing Revenue Other Income Salaries Expense Utilities Expense. Supplies Expense Insurance Expense 3,780 268,000 28,800 140,000 2,685 39,680 209,665 120,000 2,111,820 26.000 1,742,000 10,980 650 1,140 2,423,730 2,422,430