P3-1A Tony Masasi started his own consulting firm, Masasi Company, Inc., on June 1, 2008. The trial balance at June 30 is shown on page 129.MASASI COMPANY, INC. Trial Balance June 30, 2008 Account Number Debit Credit 101 Cash $ 7,150 112 Accounts Receivable 6,000 126 Supplies 2,000 130 Prepaid Insurance 3,000 157 Office Equipment 15,000 201 Accounts Payable $ 4,500 209 Unearned Service Revenue 4,000 311 Common Stock 21,750 400 Service Revenue 7,900 726 Salaries Expense 4,000 729 Rent Expense 1,000 $38,150 $38,150 In addition to those accounts listed on the trial balance, the chart of accounts for Masasi Company, Inc. also contains the following accounts and account numbers:No. 158 Accumulated Depreciation? Office Equipment, No. 212 Salaries Payable,No. 244 Utilities Payable,No. 631 Supplies Expense, No. 711 Depreciation Expense,No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand at June 30 are $600. 2. A utility bill for $150 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $2,500 of unearned service revenue has been earned at the end of the month. 5. Salaries of $2,000 are accrued at June 30. 6. The office equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months. 7. Invoices representing $1,000 of services performed during the month have not been recorded as of June 30. Instructions (a) Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. (c) Prepare an adjusted trial balance at June 30, 2008.

Axia College Material Appendix D Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance Adjusting Entries Use this General Journal to record adjusting entries on June 30, 2008 for Masasi Company, Inc. The first few lines are completed for you. GENERAL JOURNAL DATE ACCOUNT TITLE AND EXPLANATION June 30 Supplies Expense Supplies ($2000 - $6000) 30 Utilites Expense Utilites Payable 30 Insurance Expense Prepaid Insurance 30 Unearned Service Revenue Service Revenue 30 Salaries Expense Salaries Payable 30 Depreciation Expense Accumulated Depreciation - Office Equipment 30 Accounts Receivable Service Revenue J3 REF. DEBIT CREDIT 631 1,400 126 1,400 732 50 244 50 722 250 130 250 209 2,500 400 2,500 726 2,000 212 2,000 711 250 158 250 112 3,500 400 3,500 a) Adjust Entries Axia College Material Appendix D Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance Posting Entries Use this General Ledger to post adjusting entries to all 18 ledger accounts for Masasi Company, Inc. The first two accounts are completed for you. Make sure you: a) Fill in the correct information, including account titles and numbers for the remaining accounts; and b) Place a check mark in the reference column, when applicable. You can copy the check mark in the Cash account and paste it when you want to use it. GENERAL LEDGER Account: Cash DATE EXPLANATION 30-Jun-2008 Balance REF. DEBIT Account: Accounts Receivable DATE EXPLANATION 30-Jun-2008 Balance 30-Jun-2008 Adjusting REF. J3 DEBIT Account: Supplies DATE EXPLANATION 30-Jun-08 Balance Adjusting REF. No. 101 CREDIT BALANCE 7,150 No. 112 CREDIT BALANCE 6,000 1,000 7,000 DEBIT No.126 CREDIT BALANCE 2,000 600 1,400 J3 Account: Prepaid Insurance DATE EXPLANATION 30-Jun-08 Balance REF. No. 130 DEBIT CREDIT BALANCE 3,000 3,000 J3 Account: Office Equipment DATE EXPLANATION 30-Jun-08 Balance REF. 631 June 30 Supplies Expense Supplies ($2000 - $6000) 126 30 Utilites Expense 732 Utilites Payable 244 30 Insurance Expense 722 Prepaid Insurance 130 30 Unearned Service Revenue 209 Service Revenue 400 30 Salaries Expense 726 Salaries Payable 212 30 Depreciation Expense 711 Accumulated Depreciation - Office Equipment158 30 Accounts Receivable 112 Service Revenue 400 1,400 1,400 50 50 250 250 2,500 2,500 2,000 2,000 250 250 3,500 3,500 No. 157 DEBIT CREDIT BALANCE 15,000 15,000 J3 Account: Account Payable DATE EXPLANATION 30-Jun-08 Balance REF. DEBIT No. 201 CREDIT BALANCE 4,500 4,500 DEBIT No. 209 CREDIT BALANCE 4,000 4,000 DEBIT No. 311 CREDIT BALANCE 21,750 21,750 DEBIT No.400 CREDIT BALANCE 7,900 7,900 J3 Account: Unearned Service Revenue DATE EXPLANATION 30-Jun-08 Balance REF. J3 Account: Common Stock DATE EXPLANATION 30-Jun-08 Balance REF. J3 Account: Service Revenue DATE EXPLANATION 30-Jun-08 Balance REF. J3 Account: Salaries Expense DATE EXPLANATION 30-Jun-08 Balance REF. No. 726 DEBIT CREDIT BALANCE 4,000 4,000 J3 Account: Rent Expense DATE EXPLANATION 30-Jun-08 Balance REF. No. 729 DEBIT CREDIT BALANCE 1,000 1,000 J3 Account: DATE EXPLANATION REF. DEBIT No. CREDIT BALANCE Account: DATE EXPLANATION REF. DEBIT No. CREDIT BALANCE Account: DATE EXPLANATION REF. DEBIT No. CREDIT BALANCE Account: DATE EXPLANATION REF. DEBIT No. CREDIT BALANCE b) Post to Ledger Accounts Axia College Material Appendix D Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance Prepare Adjusted Trial Balance Use this Trial Balance template to prepare an adjusted trial balance for Masasi Company, Inc. at June 30, 2008. You can place summation formulas at the end of the Debit and Credit columns to compute debit and credit totals. Otherwise, you can compute totals using a calculator, then enter totals directly. MASASI COMPANY, INC. Adjusted Trial Balance 30-Jun-08 ACCOUNTS DEBIT CREDIT Totals c) Prepare Adjusted Trial Bal