The unadjusted trial balance of Guthrie Inn Company at December 31, 2024, and the data needed for the adjustments follow:

Adjustment data at December 31 follow: 

a. As of December 31, Guthrie had $700 of Prepaid Insurance remaining. 

b. At the end of the month, Guthrie had $500 of office supplies remaining. 

c. Depreciation on the building is $1,200. 

d. Guthrie pays its employees weekly on Friday. Its employees earn $2,700 for a five-day workweek. December 31 falls on Tuesday this year. 

e. On November 20, Guthrie contracted to perform services for a client, receiving $3,600 in advance. Guthrie recorded this receipt of cash as Unearned Revenue. As of December 31, Guthrie has $1,600 still unearned.

Requirements 

1. Journalize the adjusting entries on December 31. 

2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted balances. Post the adjusting entries to the ledger accounts. 

3. Prepare the adjusted trial balance. 

4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain.

Transcribed Image Text:

GUTHRIE INN COMPANY Unadjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Prepaid Insurance Office Supplies Building Accumulated Depreciation Building Accounts Payable Salaries Payable Unearned Revenue Guthrie, Capital Guthrie, Withdrawals Service Revenue Salaries Expense Insurance Expense Depreciation Expense Building Advertising Expense Supplies Expense Total Balance Debit $ 13,500 15,100 4,600 800 530,000 2,340 2,800 620 $ 569,760 Credit $ 260,000 1,710 3,600 288,950 15,500 $ 569,760