Kinder Company has the following balances in selected accounts on June 30, 2021, its fiscal year end.

Accounts Receivable ................................................. $ 0
Accumulated Depreciation—Equipment ................... 0
Equipment ............................................................ 12,000
Interest Payable ............................................................ 0
Notes Payable ........................................................ 5,000
Prepaid Rent ............................................................. 900
Salaries Payable ........................................................... 0
Supplies ................................................................. 1,415
Unearned Revenue .............................................. 2,590

All the accounts have normal balances. The information below has been gathered at June 30, 2021.

1. Kinder Company paid $900 for rent on June 1, 2021.

2. A count of supplies on June 30 indicates that supplies costing $900 are on hand.

3. The equipment, purchased on January 2, 2021, is being depreciated over 36 months.

4. Kinder Company borrowed $5,000 by signing a 4.5%, one-year note on February 1, 2021.

5. Kinder Company performed consulting services for a client in June 2021. The client will be billed $3,650. Payment is expected in July.

6. Kinder Company pays its employees total salaries of $3,000 every Monday for the preceding fi veday week (Monday through Friday). At the end of the year, five days remain unpaid.

7. $400 of the unearned revenue remains unearned at the end of the month.

Instructions

a. Prepare adjusting entries for the seven items above.

b. Prepare the appropriate subsequent cash entries if applicable.

“The amount included in an adjusted trial balance for a specific account will always be more than the amount that was included in the trial balance for the same account.” Do you agree? Why or why not?