8

Reyes Rides is owned by Jason Reyes. The company has an August 31 fiscal year end and prepares adjustments on an annual basis. The following is an alphabetical list of its accounts at August 31, 2017, before adjustments. All accounts have normal balances.

Accounts Payable

$5,730

Accounts Receivable

7,350

Accumulated DepreciationEquipment

24,125

Accumulated DepreciationVehicles

175,792

Cash

9,400

Equipment

38,600

Fuel Expense

23,900

Interest Expense

9,660

J. Reyes, Capital

105,000

J. Reyes, Drawings

140,800

Notes Payable

163,690

Prepaid Insurance

12,710

Rent Expense

22,680

Salaries Expense

140,650

Service Revenue

335,003

Supplies

4,430

Unearned Revenue

22,740

Vehicles

421,900

Additional information:

1.On August 31, a physical count shows $620 of supplies on hand.

2.The insurance policy has a one-year term that began on November 1, 2016.

3.The equipment has an estimated useful life of 10 years. The vehicles have an estimated useful life of 12 years.

4.The company collects cash in advance for any special services requested by customers. As at August 31, the company has provided all but $4,450 of these services.

5.The note payable has an annual interest rate of 7.00%. Interest is paid on the first day of each month.

6.Employees are paid a combined total of $580 per day. At August 31, 2017, five days of salaries are unpaid.

7.On August 31, the company provided $1,360 of services for a senior citizens' group. The group was not billed for the services until September 2.8.

Additional fuel costs of $620 have been incurred but not recorded. (Use the Accounts Payable account.)

a) Make T accounts and enter the unadjusted trial balance amounts.

b) Make the annual adjusting entries at August 31, 2017.

c) Post the adjusting entries.

d) Make an adjusted trial balance at August 31, 2017.