The trial balance of Nina’s Novelty, Inc., at September 30, 2010, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at September 30, $800.

b. Supplies used during the month, $900.

c. Depreciation for the month, $2,200.

d. Accrued utilities expense at September 30, $1,000. (Use Accounts Payable as the liability account needed.)

e. Accrued salaries at September 30, $800.

f. Service revenue still unearned at September 30, $1,600.
Requirements 1. Journalize the adjusting entries.
2. The unadjusted balances have been entered in the T-accounts for you. Post the adjusting entries to the T-accounts. Reference the posted amounts by let¬ ters,

(a) through (f). Calculate the adjusted balance in each account.
3. Prepare the adjusted trial balance.
4. How will the company use the adjusted trial balance?

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Nina's Novelty, Inc. Trial Balance September 30, 2010 ACCOUNT Cash Accounts Receivable DEBIT CREDIT $ 25,000 17,400 Prepaid Insurance 2,400 Supplies 1,200 Equipment Accumulated Depreciation, Equipment 59,000 $ 50,000 Accounts Payable Salary Payable Unearned Service Revenue Common Stock 2,000 2,400 25,000 Retained Earnings Dividends Service Revenue 22,800 9,700 16,200 Salary Expense 3,700 Insurance Expense Depreciation Expense Utilities Expense Supplies Expense Total $118,400 $118,400