3-9A
Problem 3-9A Adjusting entries (annual) LO4 Rainmaker Environmental Consultants is just finishing its second year of operations. The companys unadjusted trial balance at October 31, 2020, follows. Rainmaker prepares adjustments each October 31. The following additional information is available on October 31, 2020. 212 CHAPTER 3 Adjusting Accounts for Financial Statements che above mined that $12,000 of the unearned consulting revenue had not yet been earned. ered that $14,000 of the balance in the Consulting Revenue account was for services to be 1. It was determined b. It was discovered the performed in November RaiLink's purchased upplies on c. The balance in the d. Accrued wages at Octo e The office furnitu Iwo years of use, i 1. Accrued consu & Interest of $85 had h. The balance in the in the Prepaid Rent account represents three months of rent beginning September 1, 2020 rued wages at October 31 totalled $6.800. urniture was purchased on March 1, 2019, and has an estimated useful life of two years. After of use, it is expected that the furniture will be worthless. crued consulting revenue at year-end totalled $4,200. 1 of 585 had accrued on the note receivable for the month of October ce in the Prepaid Insurance account represents the remaining balance of a two-year policy purchased on April 1, 2019. A count of the supplies on Octob ount of the supplies on October 31 revealed a balance remaining of $620 ce account y. They are Friday. All all days on Acct. No. 101 106 109 111 126 128 d to have a 131 161 162 201 210 Rainmaker Environmental Consultants Unadjusted Trial Balance October 31, 2020 Account Debit Credit Cash $ 26,000 Accounts receivable.... 61.000 Interest receivable......... Notes receivable..... 50,000 Supplies............. 5,300 Prepaid insurance.. 3,400 Prepaid rent 27.000 Office furniture 84.000 Accumulated depreciation office furniture... $ 28,000 Accounts payable. 18,000 Wagos payable... 26.000 Unearned consulting revenue 223,000 Jeff Moore, capital.......... 28,000 Jeff Moore, withdrawals... 232,020 Consulting revenue Interest income Depreciation exponse, office furniture... 192.000 Wages expense Insurance expense 44.000 Rent expense. 6800 Supplies expen $527.500 $527.500 Totals 233 e space to a 1, and the ot paid the to pay both 301 302 480 401 -0 nt paid five arned Rent 409 601 622 637 640 650 me RaiLink bed in parts Prepare the annual adjusting journal entries for October 31, 2020, based on the above. Assume Inmaker Environmental uses the straight line beth depreciate its assets. u sing financial statements L06, 7
