Reyes Rides is owned by Jason Reyes. The company has an August 31 fiscal year end and prepares adjustments on an annual basis. The following is an alphabetical list of its accounts at August 31, 2014, before adjustments. All accounts have normal balances.

Additional information:
1. On August 31, a physical count shows $630 of supplies on hand.
2. The insurance policy has a one-year term that began on November 1, 2013.
3. The equipment has an estimated useful life of eight years. Th e vehicles have an estimated useful life of 10 years.
4. The company collects cash in advance for any special services requested by customers. As at August 31, the company has provided all but $4,500 of these services.
5. The note payable has an annual interest rate of 6.5%. Interest is paid on the fi rst day of each month.
6. Employees are paid a combined total of $545 per day. At August 31, 2014, three days of salaries are unpaid.
7. On August 31, the company provided $1,350 of services for a senior citizens' group. The group was not billed for the services until September 2. They paid on September 3.
8. Additional fuel costs of $620 have been incurred but not recorded. (Use the Accounts Payable account.)
Instructions
(a) Journalize the annual adjusting entries at August 31, 2014.
(b) Prepare a ledger. Enter the trial balance amounts and post the adjusting entries.
(c) Prepare an adjusted trial balance at August 31, 2014.
TAKING IT FURTHER As at August 31, 2014, approximately how old are the equipment and vehicles?

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Accounts payable Accounts receivable Accumulated depreciation-equipment Accumulated depreciation-vehicles Cash Equipment Fuel expense Interest expense J. Reyes, capital $ 5,700 7,080 25,200 175,500 9,000 40,320 23,972 9,653 105,075 J. Reyes, drawings Notes payable Prepaid insurance Rent expense Salaries expense Service revenue Supplies Unearned revenue Vehicles $141,000 162,000 12,660 22,810 140,625 334,300 4,455 25,000 421,200