Old MathJax webview

Mahmood's company report the following unadjusted trial balance Mahmood Company Unadjusted Trial Balance December 31, 2020 Debit Credit Cash 17,500 Accounts receivable 16,000 Office supplies 9,000 Prepaid rent 6,500 Office equipment 28,000 Accumulated depreciation- 3,500 Office equipment Unearned service fees 23,500 Mahmood, Capital 10,940 Mahmood, Withdrawals 1,500 Fees earned 71.960 Salaries expense 31,400 The following information is provided: 1) A physical count of supplies shows that supplies available are $2,500. 2) At December 31, 2020, salaries incurred but not paid were $11.000. 3) A careful analysis shows that 1/4 of unearned service fees were earned by Dec 31, 2020 4) A client agreed to pay $3.900 for 60-day consulting services. The first day of service started on December 23 2020 Prepare the necessary adjustments for Mahmood's company. Please follow the example: EXAMPLE: Question: Office equipment has a useful life of 4 years and no salvage value. It was purchased on October, 2019. Depreciation es year 2019, but still not recorded in 2020. Answer: Dr. Depreciation expense... 7,000