Stanley Wiley organized a drafting firm on January 1. At June 30, before the ac¬

counts were adjusted and closed for the first time, a trial balance was prepared as shown on page 169. LO8 Other data

(1) Office rent of $6,000 for one year had been paid on January 1, when the lease was signed, and had been charged to Prepaid Office Rent.

(2) Drafting supplies on hand on June 30 amounted to $240.

(3) Drafting equipment was purchased on January 1. The useful life was estimated at 10 years.

(4) Accrued interest expense on notes payable was $50 as of June 30.

(5) A number of clients obtained during the first six months of the company’s opera¬

tions had made advance payments for services to be rendered over a considerable period. As of June 30, value of services rendered and chargeable against Un¬

earned Fees was $9,500.

(6) Services rendered and chargeable to other clients amounted to $3,700 as of June 30. No entries had yet been made to record the revenue earned by performing services for these clients.
(7) Salaries earned by staff personnel but not yet paid amounted to $500 on June 30.
Instructions a Prepare adjusting entries as of June 30.
b Prepare an adjusted trial balance. (Note: You may find the use of T accounts helpful in computing the account balances after adjustments.)
Y,, ' c Prepare an income statement for the six-month period ended June 30, a statement of owner’s equity, and a balance sheet.

Transcribed Image Text:

Cash Prepaid office rent.. Inventory of drafting supplies Drafting equipment Notes payable Unearned fees Stanley Wiley, capital Stanley Wiley, drawing Fees earned. Salaries expense. Miscellaneous expense. BLUELINE DRAFTING SERVICE Trial Balance June 30, 19 $ 9,250 6,000 1,200 6,600 $ 5,000 13,000 15,100 4,270 10,620 16,200 200 $43,720 $43,720