The March 31, 2017, unadjusted trial balance for Silva Rentals after its first year of operations is shown below:

Required
1. Enter the unadjusted trial balance onto a work sheet. 

2. Using the following additional information, enter the adjustments into the work sheet (the Chart of Accounts at the back of the textbook may be useful when additional accounts are required):
a. It was determined that the balance in the Rent Receivable account at March 31 should be $36,000.
b. A count of the office supplies showed $1,830 of the balance had been used.

c. Annual depreciation on the building is $25,000 and $3,500 on the furniture. 

d. The two part-time office staff members each get paid $1,600 biweekly. The last biweekly pay period ended Friday, March 21. At March 31, six days€™ salary had accrued. 

e. A review of the balance in Advertising Expense showed that $2,400 was for advertisements to appear in the April issue of Canadian Business magazine. f. Accrued utilities at March 31 totalled $2,620. g. March interest of $425 on the long-term note payable is unrecorded and unpaid as of March 31.
3. Complete the work sheet.

Transcribed Image Text:

Unadjusted Trial Balance March 31, 2017 Unadjusted Trial Balance Cr. No. Account Dr. $ 7,000 101 Cash 110 Rent receivable 31,000 124 Office supplies 2,250 141 Notes receivable, due 2020 46,000 161 Furniture 16,000 173 Building 216,000 41,000 183 Land 191 Patent 9,600 $ 13,750 201 Accounts payable 252 Long-term note payable 301 Stephen Silva, capital 302 Stephen Silva, withdrawals 175,000 90,250 92,000 406 Rent revenue 328,800 620 Office salaries expense 52,000 633 Interest expense 5,250 655 Advertising expense 14,600 673 Janitorial expense 41,000 690 Utilities expense 34,100 $ 607,800 $ 607,800 Totals