1. Post T accounts to the general ledger.
2. Complete the Unadjusted Trial Balance.
3. Complete the Adjusted Trial Balance.
1. Post T accounts to the general ledger.
2. Complete the Unadjusted Trial Balance.
3. Complete the Adjusted Trial Balance.
Scenario: Happy House Bakeshop opened for business on October 1, 2018. During the month of October, the following transactions occurred: October 1: Issued $20,000 of common stock for $20,000 cash. October 1: Purchased a delivery van for $11,000. Paid $4,000 in cash and borrowed the remainder (long-term) from the bank. October 3: Purchased baking supplies for $900 on account. October 5: Paid $1,800 on a one-year insurance policy, effective October 1. October 12: Billed customers $4,800 for baking services. October 18: Paid $1,500 of the amount owed on the van. October 18: Paid $500 of the amount owed on baking services. October 20: Paid $1,700 for employee salaries. October 21: Collected $1,200 from customers billed on October 12. October 25: Billed customers $1,900 for baking services. October 31: Paid gas and oil for the month on the delivery, $500. October 31: Paid an $800 dividend. Adjustments: (a) Earned but unbilled fees at October 31 were $2,500 (b) Depreciation for the month was $500 (c) One-twelfth of the insurance expired (d) An inventory count showed $300 of cleaning supplies remaining on October 31 (e) Accrued but unpaid employee salaries were $500 Equipment: Van Debit Accum. Depreciation Debit Accounts Payable Debit Bank Loan Debit Credit Credit Credit Credit Salaries Payable Gas & Oil Expense Revenue Debit Salaries Expense Debit Debit Credit Credit Debit Credit Credit Insurance Expense Supplies Expense Debit Depreciation Expense Debit Income Summary Debit Debit Credit Credit Credit Credit Common Stock Debit Dividend Debit Retained Earnings Debit Credit Credit Credit Beginnng Balance Credit Unadjusted Trial Balance Debit Credit Adjusting Entries Credit Adjused Trial Balance Credit Debit Debit Debit 4. 5 Account 6 7 Cash 8 Accounts Receivable 9 Baking Supplies 10 Prepaid Insurance 11 Equipment 12 Accumulated Deprec. 13 14 Accounts Payable 15 Salaries Payable 16 Bank Loan 17 18 Common Stock 19 Retained Earnings 20 Dividends 21 22 Service Revenue 23 Gas & Oil Expense 24 Baking Supplies Expense 25 Depreciation Expense 26 Insurance Expense 27 Salaries Expense 28
