Adjusting entries Obj. 2, 3, 4, 5, 6 The Signage Company specializes in the maintenance and repair of signs, such as billboards.

On March 31, 20Y6, the accountant for The Signage Company prepared the trial balances shown at the top of the following page.

Instructions Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry.

The Signage Company Trial Balances March 31, 20Y6 Unadjusted Adjusted Debit Balances Credit Balances Debit Balances Credit Balances Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,750 4,750 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,400 17,400 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 2,175 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 1,150 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 170,000 Accumulated Depreciation—Buildings . . . . . . . . . . . . . . . . 51,500 61,000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000 Accumulated Depreciation—Trucks . . . . . . . . . . . . . . . . . . . 12,000 17,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,920 8,750 Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,400 Unearned Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500 3,850 Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000 Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,400 206,400 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 7,500 Service Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,680 169,330 Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 81,400 Depreciation Expense—Trucks . . . . . . . . . . . . . . . . . . . . . . . . — 5,000 Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,900 11,900 Supplies Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,025 Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 8,030 Depreciation Expense—Buildings . . . . . . . . . . . . . . . . . . . . . — 9,500 Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900 2,900 Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7,850 Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,150 9,150 500,000 500,000 517,730 517,730 AppendixLO1