ACC 100 Fundamantal of Accounting Mid Term Exam Quarter Fall 2016 ABC adjusts its accounts every month. The companys unadjusted trial balance dated August 31, 2015. Additional information is provided for use in preparing the companys adjusting entries for the month of August. (Bear in mind that adjusting entries have already been made for the first seven months of 2015, but not for August.) ABC Inc. 10 Column Work sheet For the month ended Dec. 31, 2015 UNADJUSTED TRIAL BALANCE Adjustments ADJUSTED TRIAL BALANCE Income Statement Balance sheet PARTICULARS DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash $27,020.00 0 Accounts Receivable $59,200.00 Unexpired Insurance $ 900.00 Prepaid Rent $ 3,000.00 Office Supplies $ 600.00 Equipment $60,000.00 Accumulated depreciation: equipment $29,500.00 Accounts payable $4,180.00 Interest payable $12,000.00 Interest payable $ 320.00 Unearned fees $6,000.00 Income taxes payable $4,000.00 Unearned revenue $20,000.00 Retained earnings $49,000.00 Capital stock $25,000.00 Dividends $ 3,000.00 Fees earned $75,000.00 Travel expense $ 5,000.00 Insurance expense $ 2,980.00 Rent expense $ 9,900.00 Office SuppliesExp. $ 780.00 Utilities expense $ 4,800.00 Depreciation expense $ 5,500.00 Salaries expense $30,000.00 Interest expense $ 320.00 Income taxes expense $12,000.00 TOTAL $225,000.00 $225,000.00 Other Data 1. Accrued but unrecorded fees earned as of December 31, 2015, amount to $1,500. 2. Records show that $2,500 of cash receipts originally recorded as unearned fees had been earned as of December 31. 3. The company purchased a six-month insurance policy on September 1, 2015, for $1,800. 4. On December 1, 2015, the company paid its rent through February 28, 2016. 5. Office supplies on hand at December 31 amount to $400. 6. All equipment was purchased when the business first formed. The estimated life of the equipment at that time was 10 years (or 120 months). 7. On August 1, 2015, the company borrowed $12,000 by signing a six-month, 8 percent note payable. The entire note, plus six months accrued interest, is due on February 1, 2016. 8. Accrued but unrecorded salaries at December 31 amount to $2,700. 9. Estimated income taxes expense for the entire year totals $15,000. Taxes are due in the first quarter of 2016. Instructions a. For each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation). b. Determine that amount at which each of the following accounts will be reported in the companys 2015 income statement: 1. Fees Earned 2. Travel Expense 3. Expense 4. Rent Expense 5. Office Supplies Expense 6. Utilities Expense 7. Depreciation Expense: Equipment 8. Interest Expense 9. Salaries Expense c. The unadjusted trial balance reports dividends of $3,000. As of December 31, 2015, have these dividends been paid? Explain. d.Pass closing Entries e. Prepare after closing trial balance Required: Preparing Adjusting Entries from a the given "other data" then complete 10 column work sheet.(Formate is provided) ABC adjusts its accounts every month. The companys unadjusted trial balance dated August 31, 2015. Additional information is provided for use in preparing the companys adjusting entries for the month of August. (Bear in mind that adjusting entries have already been made for the first seven months of 2015, but not for August.)