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After youve completed the trial balance, Sophia tells you that there were a number of internal business transactions that occurred during the year, but were
After youve completed the trial balance, Sophia tells you that there were a number of internal business transactions that occurred during the year, but were not recorded. You must use this information to prepare adjusting entries and an adjusted trial balance, which are steps 5 and 6 in the accounting cycle.
A. On December 1 received cash of $360 for three months of Cleaning Services beginning December 1 B. HHEC received employee services for the last two days of December amounting to $250, to be paid in Year 2 C. As of December 31, Year 1, HHEC provided 25 hours of cleaning services at $20 per hour to be billed in January Year D. On December 31, Year 1, HHEC recorded depreciation on its Office Equipment of $50 E. On December 31, Year 1, HHEC record depreciation on Building of $1,980 F. On December 31, Year 1, $100 of insurance had been used G On December 31, Year 1, $400 of supplies had been used Trial Balance December 31, Year 1 Cash Accounts Receivable Supplies Preapid Insurance Buildin Office Equipment Accounts Payable Sisters, Capital Sisters, Withdrawals Clearning Revenues Wages Expense Utilities Expense Miscellaneous Expense Total 6,855 2,200 2,800 2,400 10,000 1.800 1,850 15,000 4,000 18,660 4,275 985 195 35,510 35,510 ANSWERS Adjusting EntriesStep by Step Solution
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