Investors’ Advisory Service was organized on June 1, 19 - , to provide investment counseling to investors in securities. Some customers paid in advance on a subscrip¬

tion basis; others were billed after services were rendered. Assume that the compa¬

ny’s accounts are adjusted and closed each month. The trial balance at October 31 follows: LO8

Other data

(a) The monthly rent was $600.

(b) Office supplies on hand October 31 amounted to $325.

(c) The office equipment was purchased on June 1. The useful life was estimated at 10 years.

(d) Services rendered during the month and chargeable to Unearned Revenue (sub¬
scription basis) amounted to $1,500.

(e) Investment advisory services rendered during the month but not yet billed amounted to $280. (Debit Advisory Service Receivables.)
(f ) Salaries earned by employees during the month but not yet paid amounted to $415.
Instructions a Prepare adjusting entries at October 31.
b Prepare an adjusted trial balance.

Transcribed Image Text:

Cash INVESTORS' ADVISORY SERVICE Trial Balance October 31, 19 Prepaid rent. Inventory of office supplies Office equipment.. Accumulated depreciation: office equipment. Accounts payable Unearned revenue Alice Bennett, capital. Alice Bennett, drawing Fees earned.. Telephone expense Travel expense Salaries expense. $13,000 1,800 500 3,600 120 580 6,000 12,000 300 5,000 400 100 4,000 $23,700 $23,700