The trial balance of Designs by Jill, Inc., at September 30, 2018, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at September 30, $1,950

b. Supplies used during the month, $900

c. Depreciation for the month, $2,500

d. Accrued utilities expense at September 30, $435 (use Accounts Payable as the liability account needed)

e. Accrued salaries at September 30, $650

f. Service revenue still unearned at September 30, $1,860

Requirements

1. Open T-accounts for the accounts listed in the trial balance and insert their September 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 for each account.

3. Prepare the adjusted trial balance at September 30, 2018.

4. How will the company use the adjusted trial balance?

Transcribed Image Text:

Designs by Jill, Inc. Trial Balance September 30, 2018 ACCOUNT DEBIT CREDIT Cash $22,800 19,700 Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Salaries Payable 2,600 1,200 83,800 $53,700 2,000 Unearned Service Revenue 2,200 20,000 Common Stock Retained Earnings 49,600 Dividends 9,300 Service Revenue 15,600 Salaries Expense Insurance Expense Depreciation Expense, Equipment Utilities Expense Supplies Expense 3,700 Total $143,100 $143,100