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1. The unadjusted trial balance of Nadia Business Consulting at December 31, 2020, and the data for the adjustments follow: Nadia Business Consulting Unadjusted
1. The unadjusted trial balance of Nadia Business Consulting at December 31, 2020, and the data for the adjustments follow: Nadia Business Consulting Unadjusted Trial Balance December 31, 2020 Balance Balance Account Title Debit Credit Cash $ 40,000 Accounts Receivable 12,000 Prepaid Insurance 3,000 Office Supplies 6,000 Accounts Payable $5,000 Advertising Payable Julia, Capital 37,000 Julia, Withdrawals 5,000 Service Revenue 44,000 Advertising Expense 500 Insurance Expense 1,500 Office Supplies Expense 0 Rent Expense 6,000 Salaries Expense 12,000 Total $ 86,000 $ 86,000 Data for adjustments: a. Nadia prepaid 6 months of business insurance on September 30, 2018, with coverage beginning on October 1. Julia treats deferred expenses initially as assets. b. A physical count of office supplies was made on December 31, 2020. This count showed a balance of $4,200 office supplies on hand. c. On December 31, 2018, Nadia received a bill for the November and December advertising in a local newspaper, $800. This bill will be paid on its due date, which is 1/10/2021. Nadia is preparing financial statements for the quarter ending December 31, 2020. i.Journalize the adjusting entries on December 31, 2020. ii.Prepare the December 31, 2020 adjusted trial balance. Use a proper heading.
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