Adjusting the Accounts

The trial balance of Mark Company at December 31, 2019 is shown below.

Mark Company

Trial Balance

December 31, 2019

Accounts

Debit

Credit

Cash

37,500

Prepaid Insurance

82,500

Supplies

41,250

Equipment

900,000

Accumulated Depreciation - Equipment

168,750

Notes Payable

150,000

Accounts Payable

90,000

Mark Capital

573,750

Mark Drawings

90,000

Service Revenue

183,750

Utilities Expense

15,000

Total

1,166,250

1,166,250

Other information:

1. Depreciation of equipment for December was $15,000.

2. Rent owed for the month of December but will not be paid until January, 2020 was $22,500.

3. The amount of insurance that expired in the month of December was $7,500.

4. Salaries owed for the month of December but will not be paid until January, 2020 was $30,000.

5. A physical count of supplies indicates $11,250 on hand at December 31.

Required:

a. Prepare the adjusting entries required on December 31, 2019.

b. Prepare the adjusted trial balance on December 31, 2019.