On July 31, 20X1, after one month of operation, the general ledger of Michael Mendoza, CPA, contained the accounts and balances given below.

INSTRUCTIONS
1. Prepare a partial worksheet with the following sections: Trial Balance, Adjustments, and Adjusted Trial Balance. Use the data about the firm’s accounts and balances to complete the Trial Balance section.
2. Enter the adjustments described below in the Adjustments section. Identify each adjustment with the appropriate letter.
3. Complete the Adjusted Trial Balance section.

ACCOUNTS AND BALANCES

ADJUSTMENTS
a. On July 31, an inventory of the supplies showed that items costing $530 were on hand.
b. On July 1, the firm paid $10,500 in advance for three months of rent.
c. On July 1, the firm purchased a one-year insurance policy for $2,820.
d. On July 1, the firm paid $400 for four months of advertising. The ads began running in July.
e. On July 1, the firm purchased office furniture for $14,760. The furniture is expected to have a useful life of six years and a salvage value of $1,800.

f. On July 1, the firm purchased office equipment for $7,250. The equipment is expected to have a useful life of five years and a salvage value of $1,850.
g. On July 1, the firm issued a three-month, 6 percent note for $17,700.
h. On July 1, the firm received a consulting fee of $6,600 in advance for a one-year period.

Analyze:

By what total amount were the expense accounts of the business adjusted?

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Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Prepaid Advertising Furniture Accumulated Depreciation-Furniture Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Unearned Accounting Fees Michael Mendoza, Capital Michael Mendoza, Drawing Accounting Fees Salaries Expense Utilities Expense Telephone Expense $26,710 Dr. 2,440 Dr. 960 Dr. 10,500 Dr. 2,820 Dr. 400 Dr. 14,760 Dr. 7,250 Dr. 17,700 Cr. 5,500 Cr. 6,600 Cr. 34,720 Cr. 3,600 Dr. 9,600 Cr. 4,200 Dr. 270 Dr. 210 Dr.