INFERRING ADJUSTING ENTRIES FROM ACCOUNT BALANCE CHANGES.

The following schedule shows all the accounts of Fresno Travel Agency that received year-end adjustments (the trial balance was illustrated in Chapter 3):

REQUIRED:
1. Calculate the missing amounts identified by the numbers (1) through (5).
2. Prepare the five adjusting entries that must have been made to cause the account changes as indicated.

Transcribed Image Text:

Prepaid insurance Prepaid rent Accumulated depreciation Wages payable Unearned revenue, service Service revenue Insurance expense Rent expense Depreciation expense Wages expense UNADJUSTED TRIAL BALANCE ADJUSTED TRIAL BALANCE $ 4,550 $ 23,270 4,800 3,600 156,000 (1) -0- 3,770 3,620 (2) 71,600 73,920 -0- (3) 29,700 (4) -0- 16,000 44,200 (5)