Question
Garvey Companys unadjusted trial balance includes the following account balances as of December 31, 2015: Debits Credits Cash $ 71,770 Accounts receivable 127,700 Interest receivable
Garvey Companys unadjusted trial balance includes the following account balances as of December 31, 2015: Debits Credits Cash $ 71,770 Accounts receivable 127,700 Interest receivable 1,680 Supplies 151,900 Prepaid insurance 9,650 Notes Receivable (short-term) 55,700 Equipment 304,400 Accumulated DepreciationEquipment $ 70,600 Accounts payable 113,600 Salaries and Wages Payable 23,500 Unearned revenue 11,100 Notes Payable (long-term) 95,000 Common Stock 237,000 Retained earnings 156,800 Service revenue 44,300 Interest revenue 23,800 Supplies Expense 0 Repair and Maintenance Expense 29,250 Rent Expense 19,700 Depreciation Expense 0 Insurance Expense 0 Salaries and Wages Expense 3,950 Totals $ 775,700 $ 775,700 The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $9,650 provided coverage for twelve months (July 2015 through June 2016). The insurance coverage for July through December totaling $4,825 has now been used. B) The company estimates $9,100 in depreciation each year. C) Account showed $95,200 of supplies on hand at the end of the year. D) An additional $450 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. E) Services in the amount of $6,550 were performed for customers who had previously paid in advance. F) Services in the amount of $3,900 were performed; these services have not yet been billed or recorded.
Required: a. Prepare the adjusting entries that are required at the end of the period. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. Prepare an adjusted trial balance by completing the related columns in the table below.
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