Question
Jacki Lopez started JVL Consulting on January 1, 2014. The following are the account balances at the end of the first month of business, before
Jacki Lopez started JVL Consulting on January 1, 2014. The following are the account balances at the end of the first month of business, before adjusting entries were recorded:
Accounts Payable | $300 |
Accounts Receivable | 800 |
Cash | 6,500 |
Consulting Revenue | 6,000 |
Equipment | 7,000 |
Jacki Lopez, Capital | 15,000 |
Jacki Lopez, Drawing | 2,000 |
Prepaid Rent | 4,000 |
Supplies | 1,000 |
Adjustment data:
Supplies on hand at the end of the month: $300
Unbilled Consulting Revenue: $850
Rent expense for the month: $2,000
Depreciation on equipment: $150
1. Prepare the adjusting entries in general journal form. You will need to add accounts that do not appear on the trial balance before adjustments. 2. Prepare the adjusted trial balance
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