Activity 4.a - Using T-accounts to Analyze Adjustments

Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid, Accrual, or Depreciation. Use Unadj. Bal. as the label for the opening balance of each account. Calculate the adjusted balance and use a Bal. posting reference to show the ending balance of each account. Enter each transaction on the first available line in the T-Account.

Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid, Accrual, or Depreciation. Use Unadj. Bal. as the label for the opening balance of each account. Calculate the adjusted balance and use a Bal. posting reference to show the ending balance of each account. Enter each transaction on the first available line in the T-Account. The unadjusted balance of Office Supplies at Dec. 31 is $8,600 and at year end the office supplies on hand totaled $3,970. Adjustment Type: Supplies Expense Office Supplies Completed services that were paid for six months earlier, $430. The Service Revenue unadjusted balance as of December 31 is $11,700. The Unearned Revenue balance as of December 31 is $9,200. Adjustment Type: Unearned Revenue Service Revenue Customers were billed for $4,740 for work completed. The Service Revenue unadjusted balance as of December 31 is $11,800. Adjustment Type: Accounts Receivable Service Revenue