Prepare adjusting journal entries and an adjusted trial balance (Learning Objectives 2 & 3) 25–30 min.

The trial balance of Advantage Advertising, Inc., at November 30, 2014, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at November 30, $900.

b. Supplies used during the month, $845.

c. Depreciation for the month, $2,700.

d. Accrued utilities expense at November 30, $630. (Use Accounts Payable as the liability account needed.)

e. Accrued salaries at November 30, $1,495.

f. Service revenue still unearned at November 30, $1,165.
Requirements 1. Open T-accounts for the accounts listed in the trial balance and insert their November 30 unadjusted balances.
2. Journalize the adjusting entries and post them to the T-accounts. Reference the posted amounts by letters

(a) through (f). Calculate the adjusted balance in each account.
3. Prepare the adjusted trial balance at November 30, 2014.
4. How will the company use the adjusted trial balance?AppendixLO1

Transcribed Image Text:

Advantage Advertising, Inc. Trial Balance November 30, 2014 ACCOUNT Cash Accounts Receivable Prepaid Insurance Supplies Equipment DEBIT CREDIT $ 6,420 8,650 2,800 1,150 48,000 Accumulated Depreciation, Equipment $11,200 Accounts Payable Salaries Payable Unearned Service Revenue Common Stock Retained Earnings 1,920 3,100 30,000 9,960 Dividends Service Revenue 1,500 18,710 Salaries Expense 6,370 Insurance Expense Depreciation Expense, Equipment Utilities Expense Supplies Expense Total $74,890 $74,890