A trial balance of the ledger of Ms. Shine Janitorial Service at the end of its annual
Question:
A trial balance of the ledger of Ms. Shine Janitorial Service at the end of its annual accounting period appeared as follows:
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1. Enter the trial balance on a work sheet form and complete the work sheet using the information that follows:
a. Expired insurance, \(\$ 1,425\).
b. An inventory of cleaning supplies showed \(\$ 185\) of unused supplies on hand.
c. The cleaning service rents garage and equipment storage space. At the beginning of the year, three months' rent was prepaid as shown by the debit balance of the Prepaid Rent account. Rents for April through November were paid on the first day of each month and debited to the Rent Expense account. The December rent was unpaid on the trial balance date.
d. Estimated depreciation on the cleaning equipment, \(\$ 545\), and
(e) on the trucks, \(\$ 3,255\).
f. On November 15, the janitorial service contracted and began cleaning the office of Troy Realty for \(\$ 300\) per month. The realty company paid for two months' service in advance, and the amount paid was credited to the Unearned Janitorial Revenue account. The janitorial service also entered into a contract and began cleaning the office of Knox Insurance Agency on December 15. By the month's end, a half month's revenue, \(\$ 180\), had been earned on this contract but was unrecorded.
g. Employee's wages amounting to \(\$ 270\) had accrued but were unrecorded on the trial balance date.
2. Prepare an income statement, a statement of changes in owner's equity, and a classified balance sheet for the business. Ms. Adams did not make additional investments in the business during 1990.
3. Prepare adjusting journal entries and compound closing entries.
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