HHEC HAPPY HOME Environmental Cleaning 1 2 A B C D E F G H K L M N P Q R S Task 3: After you've completed the trial balance, Sophia tells you that a number of internal business transactions occurred during the year but were not recorded. You must use this information to prepare adjusting entries and an adjusted trial balance, which are steps 5 and 6 in the accounting cycle. 3 A. On December 1 received cash of $360 for three months of Cleaning Services beginning December 1. 4 B. HHEC received employee services for the last two days of December amounting to $250, to be paid in Year 2. 5 C. As of December 31, Year 1, HHEC provided 25 hours of cleaning services at $20 per hour to be billed in January Year 2. 6 D. On December 31, Year 1, HHEC recorded depreciation on its Office Equipment of $50 7 E. On December 31, Year 1, HHEC record depreciation on Building of $1,980 8 F. On December 31, Year 1, $100 of insurance had been used. 9 G On December 31, Year 1, $400 of supplies had been used 10 11 12 13 14 HHEC Trial Balance December 31, Year 1 15 Cash 16 Accounts Receivable 17 Supplies 18 Preapid Insurance 19 Building 20 Office Equipment 21 Accounts Payable 22 Sisters, Capital 23 Sisters, Withdrawals 24 Clearning Revenues 6,855 2,200 2,800 2,400 10,000 1,800 1,850 15,000 4,000 18,660 25 Wages Expense 4,275 26 Utilities Expense 985 27 Miscellaneous Expense 195 28 Total 35,510 35,510 29 30 31 ANSWERS 32 Adjusting Entries: 33 34 Challenge 1-Task 3