Chapter 3 HiTech Communications example continued Trial balance as of March 31, 2013, before adjustments Credit Debit $16.600 6,500 1,200 4.500 $500 9.000 RE Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Notes Payable Common Stock Dividends Service Revenue Salaries Expense Utilities Expense Totals Adjustments at the end of March 3.000 12,000 500 12.100 1,800 5.200 $36.600 $36,600 1. HiTech had performed $1.500 of advertising services for which it had not yet billed the customer 2. The note payable for $3,000 that HiTech siened on March 2 required it to pay interest at an annud rate of 8% 3. HiTech paid its weekly salaries on March 26. Salaries are $360 per day. HiTech will not pay salaries again until April 2. However, employees worked on March 29, March 30, and March 31. 4. HiTech's trial balance shows that a customer paid $9.000 in advance for services to be performed at a later date. Based on HiTech's analysis of work performed during March, it is determined that $3,300 of revenue has been earned. 5. HighTech's trial balance shows a balance of $6,500 in the Supplies account. However, an inventory count at the close of business on March 31 determined that supplies on hand were $1,200. 6. HiTech's trial balance shows a balance of $1,200 in the Prepaid Insurance account related to a 6- month insurance policy purchased at the beginning of March. 7. HiTech's trial balance shows that $4,500 of equipment was purchased. HiTech computed depreciation expense as $125 per month. Required: 4. Prepare the adjusting entries 5. Post adjusting entries to the ledger (T-accounts) 6. Prepare the adjusted trial balance 7. Prepare the financial statements 8. Prepare the closing entries 9. Post closing entries to the ledger 10. Prepare the post-closing trial balance The Review Problem at the end of Chapter 3 is similar. You can use it for additional practice completing the steps of the accounting cycle at the end of the accounting period