Question
Allen Enterprises is owned by Edmund Allen and has a January 31 fiscal year-end. The company prepares adjusting entries on an annual basis. The following
Allen Enterprises is owned by Edmund Allen and has a January 31 fiscal year-end. The company prepares adjusting entries on an annual basis. The following trial balance was prepared before adjustments:
ALLEN ENTERPRISES Trial Balance January 31, 2024 | ||||
---|---|---|---|---|
Debit | Credit | |||
Cash | $4,900 | |||
Accounts receivable | 14,580 | |||
Prepaid insurance | 3,960 | |||
Supplies | 6,570 | |||
Equipment | 31,000 | |||
Accumulated depreciation-equipment | $12,400 | |||
Accounts payable | 7,720 | |||
Notes payable | 11,520 | |||
Unearned revenue | 7,360 | |||
E. Allen, capital | 18,280 | |||
E. Allen, drawings | 118,100 | |||
Service revenue | 212,370 | |||
Rent expense | 20,890 | |||
Salaries expense | 66,830 | |||
Telephone expense | 2,820 | |||
$269,650 | $269,650 |
Additional information:
1. | A one-year insurance policy was purchased on July 1, 2023. | |
2. | A count of supplies on January 31, 2024, shows $930 of supplies on hand. | |
3. | The equipment has an estimated useful life of five years. | |
4. | An analysis of the Unearned Revenue account shows that $5,400 of the services had been provided by January 31, 2024. | |
5. | The eight-month, 5% note was issued on November 1, 2023. Interest and principal are due on the maturity date. | |
6. | Salaries accrued to January 31, 2024, were $1,290. | |
7. | On January 31, 2024, the company had provided services but not billed or recorded service revenue of $2,660. | |
8. | The telephone bill for January 2024 was $195. It has not been recorded or paid. (Use the Accounts Payable account.) |
A) Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
B) Prepare an adjusted trial balance at January 31.
**PLEASE ANSWER ALL OF THE QUESTIONS!!**
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