The trial balances before and after adjustment for Villa Company at the end of its fiscal year are presented below.

Instructions Prepare the adjusting entries that were made.

Transcribed Image Text:

VILLA COMPANY Trial Balance August 31, 2006 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Cash Accounts Receivable Office Supplies $10,400 $10,400 8,800 9,400 2.300 700 Prepaid Insurance Office Equipment Accounts Payable 4,000 2,500 14,000 14,000 Accumulated Depreciation-Office Equipment Salaries Payable $ 3.600 $ 4,900 5,800 5.800 -0- 1.100 Unearned Rent 1.500 600 Rent Expense Insurance Expense Common Stock Retained Earnings Service Revenue Rent Revenue Salaries Expense Office Supplies Expense -0- 10,000 10,000 5,600 5.600 34.000 34,600 11.000 11.900 17,000 18.100 -0- 15,000 1,600 15.000 1.500 Depreciation Expense ---0- 1,300 $71.500 $71.500 $74.500 $74,500