B D E F G H 1 K Additional Information: 1. Depreciation on building for the year is $2,800. 2. A total of $3,400 of the prepaid insurance has expired. 3. A physical count showed $12,000 of supplies on hand on June 30. 4. The unearned management fees were received and recorded on March 1, 2001. The advance payment covered six months management of an apartment building. 5. Interest rate on loan is 11 %( the loan was taken 1 January 2001). 6. Salaries has been earned $2,000 but not paid yet 1 Required: I. Journalize the appropriate adjusting entries at the year-end. II. Prepare a complete worksheet for the year. 2 Knapton Real Estate Trail balance 30 June, 2001 3 Trial Balance Adjustments Adjusted Trial Balance Balance Sheet Income Statement Dr Cr 5 Account Title CI Dr Cr Dr Cr Dr Cr 6 7 Dr 80,000 94,000 14,000 4,800 8 9 10 30,000 11 320,000 20,000 12 13 36,000 120,000 14 Cash Accounts Receivable Supplies on Hand Prepaid Insurance Loans Payable Buildings Goodwill Accumulated Depreciation-Buildings Commission revenue Salaries expenses Unearned management fees revenue Postare expenses Cleaning service expense Management fees revenue Accounts Payable Owner' Equity Interest expense TOTAL 15 9,000 16 24,000 17 1,500 1,300 18 19 20 10,000 65,000 260,600 21 22 1,000 23 545,600 545,600