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Garvey Company's unadjusted trial balance includes the following account balances as of December 31, 2018: Credits Debits $ 70,040 121,100 1,460 144,200 9,100 52,400 289,000
Garvey Company's unadjusted trial balance includes the following account balances as of December 31, 2018: Credits Debits $ 70,040 121,100 1,460 144,200 9,100 52,400 289,000 Cash Accounts Receivable Interest Receivable Supplies Prepaid Insurance Notes Receivable (short-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Interest Revenue Supplies Expense Repair and Maintenance Expense Rent Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Totals $ 67,000 188,100 22,400 10,000 90,600 224, 90e 149, 100 42,100 22,700 27.600 18,600 3,400 5736.900 5736,90 Totals $736,900 $736,900 The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $9,100 provided coverage for twelve months (July 2018 through June 2019). The insurance coverage for July through December totaling $4,550 has now been used. B) The company estimates $8,550 in depreciation each year. C) A count showed $89,700 of supplies on hand at the end of the year. D) An additional $340 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. E) Services in the amount of $6,000 were performed for customers who had previously paid in advance F) Services in the amount of $2,800 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 b. Prepare an adjusted trial balance by completing the related columns in the table below. Complete this question by entering your answers in the tabs below. Journal entry worksheet 1 2 3 4 5 Record the adjusting entry for insurance expense expired during the period. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 3 4 5 6 Record the adjusting entry for depreciation expense for the period. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet
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